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The level of inventory of a manufactured product has increased by 7,518 units during a period. The following data are also available: Variable Fixed Unit
The level of inventory of a manufactured product has increased by 7,518 units during a period. The following data are also available:
Variable | Fixed | |
Unit manufacturing costs of the period | $12.00 | $3.00 |
Unit operating expenses of the period | 4.00 | 5.00 |
The effect on operating income if variable costing is used rather than absorption costing would be a(n)
a.$60,144 decrease
b.$22,554 increase
c.$22,554 decrease
d.$60,144 increase
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