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Q8.71: Harvey's Head-toppers Co. manufactures silly party hats for birthdays, New Year's Eve and other celebrations. During the month of November, they produced 110,000 hats.
Q8.71: Harvey's Head-toppers Co. manufactures silly party hats for birthdays, New Year's Eve and other celebrations. During the month of November, they produced 110,000 hats. Although they started the month with no inventory on hand, they had 10,000 hats remaining unsold at the end of the month. This allowed them to defer a total of $45,000 in fixed manufacturing overhead to future periods, which explains why the variable net income reported was the net income reported under absorption costing. lower than higher than equal to
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