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Heinrich Co. incurred fixed manufacturing costs of $6,000 during 205. Other information for 205 includes. The budgeted denominator level is 1,000 units. Units produced total
Heinrich Co. incurred fixed manufacturing costs of $6,000 during 205. Other information for 205 includes. The budgeted denominator level is 1,000 units. Units produced total 750 units. Units sold total 600 units. Beginning inventory was zero. The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted cont of goods sold. Operating income using absorption costing will be than operating income if using variable costing. A. $900 higher B. $2,400 lower C. $3,600 lower D. $1,200 higher
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