The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available:

	Variable	Fixed
Unit manufacturing costs of the period	$24.00	$10.00
Unit operating expenses of the period	8.00	3.00

What would be the effect on income from operations if variable costing is used rather than absorption costing?

a.$65,000 increase

b.$50,000 increase

c.$50,000 decrease

d.$65,000 decrease

Calculator Print Item Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smithson's fixed costs pe month. Round your final answer to the nearest dollar. Do not round interim calculations Machine Hours 9,800 18,300 12,400 15,100 Cost $26,500 37,300 28,100 31,000 anuary February March pril a. $23,882 b. $14,048 Xc. $11,238 d. $44,954 Previous Next