Question Content Area

The level of inventory of a manufactured product has increased by 8,363 units during a period. The following data are also available:

	Variable	Fixed
Unit manufacturing costs of the period	$13.00	$6.00
Unit operating expenses of the period	3.00	5.00

The effect on operating income if variable costing is used rather than absorption costing would be a(n)

a. $91,993 increase

b. $50,178 increase

c. $91,993 decrease

d. $50,178 decrease