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Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations Variable costs per unit: Direct materials $
Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations Variable costs per unit: Direct materials $ 110 Fixed costs per year: Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses S 831, 600 $4, 227, 300 $2, 169, 600 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 69,300 units and sold 66,900 units. The company's only product is sold for $283 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $12 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year? Multiple Choice Variable costing net operating income exceeds super-variable costing net operating income by $146,400 Super-variable costing net operating income exceeds variable costing net operating income by $146,400 Variable costing net operating income exceeds super-variable costing net operating income by $28,800 Super-variable costing net operating income exceeds variable costing net operating income by $28,800
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