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Indiana Corporation produces a single product that it sells for $9 per unit. During the first year of operations, 100,000 units were produced and 90,000 units were sold. Manufacturing costs and selling and administrative expenses for the year were as follows: Fixed Costs Variable Costs Raw materials $1.75 per unit produced 10 Direct labour 1.25 per unit produced points Factory overhead $100,000 0.50 per unit produced Skipped Selling and administrative 70,000 0.60 per unit sold What was Indiana Corporation's operating income for the year using variable costing? Book Print Multiple Choice $181,000. O $271,000. O $281,000. O $371,000.2 Which of the following statements is true for a firm that uses variable costing? Multiple Choice 10 points Skipped The unit product cost changes as a result of changes in the number of units manufactured. eBook O Both variable selling costs and variable production costs are included in the unit product cost. Print O Operating income moves in the same direction as sales. O Operating income is greatest in periods when production is highest.3 During the year just ended, Roberts Company's operating income under absorption costing was $3,000 lower than its operating income under variable costing. The company sold 9,000 units during the year, and its variable costs were $9 per unit, of which $3 was variable selling expense. If production cost is $11 per unit under absorption costing every year, how many units did the company produce during the year? 10 Multiple Choice points Skipped O 8,000 units. eBook Print O 8,400 units. O 9,600 units. O 10,000 units.4 For the most recent year, Atlantic Company's operating income computed using the absorption costing method was $7,400, and its operating income computed using the variable costing method was $10,100. The company's unit product cost was $17 under variable costing and $22 under absorption costing. Atlantic produces the same number of units each year. What must have been the beginning inventory if the ending inventory consisted of 1,460 units? 10 Multiple Choice points Skipped O 920 units. Book Prime 1,460 units. 2,000 units. O 12,700 units.5 Last year, Stephen Company had 20,000 units in its ending inventory. During the year, Stephen Company's variable production costs were $12 per unit. The fixed manufacturing overhead cost was $8 per unit in the beginning inventory. The company's operating income for the year was $9,600 higher under variable costing than it was under absorption costing. Given these facts, what must have been the number of units of product in the beginning inventory last year? 10 Multiple Choice points Skipped 18,800 units. Book Print O 19,200 units. O 19,520 units. O 21,200 units