Property taxes on a factory building would be included as part of the cost of products manufactured under the absorption costing concept. True False In the variable costing income statement, deduction of variable selling and administrative expenses from manufacturing margin yields Oa, gross profit b. marginal expenses Oc, differential margin d. contribution margin 1.00 The level of Inventory of a manufactured product has increased by 8,225 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $14.00 $5.00 Unit operating expenses of the period 1.00 The effect on operating income if variable costing is used rather than absorption costing would be an) Oa: 849,350 decrease Ob. $49,350 increase Oc. $41,125 decrease Od $41,125 increase The level of inventory of a manufactured product has increased by 4,000 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $22.00 $11.00 Unit operating expenses of the period 7.00 5.00 The effect on operating income if absorption costing is used rather than variable costing would be a Oa. $64,000 increase Ob. 544,000 increase Oc. $44,000 decrease Od. $64,000 decrease A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,800 units): Direct materials $171,500 Direct labor 222,500 Variable factory overhead 270,000 Fixed factory overhead 90,200 $754,200 Operating expenses: Variable operating expenses $122,800 Fixed operating expenses 41,500 164,300 If 1,600 units remain unsold at the end of the month and sales total $1,040,000 for the month, what would be the amount of income from operations reported on the variable costing income statement? Oa. $181,240 Ob. $59,685 Oc. $67,793 Od. $82,562