Question
The following information pertains to Mayberry Corporation: Beginning inventory 1,000 units Ending inventory 6,000 units Direct labor per unit $40 Direct materials per unit 20
The following information pertains to Mayberry Corporation:
| Beginning inventory | 1,000 units |
| Ending inventory | 6,000 units |
| Direct labor per unit | $40 |
| Direct materials per unit | 20 |
| Variable overhead per unit | 10 |
| Fixed overhead per unit | 30 |
| Variable selling and admin. costs per unit | 6 |
| Fixed selling and admin. costs per unit | 14 |
Absorption costing income would be ____ variable costing income.
| a. | $150,000 greater than | |
| b. | $150,000 less than | |
| c. | $240,000 less than | |
| d. | $240,000 greater than |
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Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
4th Edition
0470534788, 978-0470534786
