Net income under absorption costing is gross profit less A fixed manufacturing overhead and variable manufacturing overhead. B) variable selling and administrative expenses and fixed selling and administrative expenses. c) fixed manufacturing overhead and fixed selling and administrative expenses. D) cost of goods sold. 30. At 18,000 direct labor hours, the flexible budget for indirect materials is $36,000. If $37,400 are incurred at 18,400 direct labor hours, the flexible budget report should show the following difference for indirect materials A) $600 unfavorable. B) $600 favorable. C) $1,400 unfavorable. D) $1,400 favorable. 31. Greer Company developed the following data for the current year: Beginning work in process inventory $ 102,000 Direct materials used 156,000 Actual overhead 132.000 Overhead applied 138,000 Cost of goods manufactured 675,000 Total manufacturing costs 642,000 How much is Greer Company's direct labor cost for the year? A) S246.000 B) 5348.000 C) 381,000 D) $450,000 2. In 2013, Teller Company sold 3,000 units at $400 each. Variable expenses were $280 per unit, and fixed expenses were $160,000. What was Teller's 2013 net income? A) $840,000 B) $200,000 C) $1,200,000 D) $360,000 Version 1 Page 10