Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units and then produced 8,000 units and sold 10,000 units during its second year of operations:

	Per Unit	Per Year
Direct materials	$ 75
Direct labor	$ 50
Variable manufacturing overhead	$ 10
Fixed manufacturing overhead		$ 300,000

If the companys absorption costing net operating income during its second year of operations was $18,000, what was its variable costing net operating income or loss during its second year of operations?

Garrison 17e Rechecks 2021-10-23

Multiple Choice

• $39,000

• $78,000

• $(39,000)

• $139,000