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XYZ Inc. sells a single product for $80 per unit. Direct materials costs were $5 per unit, while direct labour and variable manufacturing overhead costs
XYZ Inc. sells a single product for $80 per unit. Direct materials costs were $5 per unit, while direct labour and variable manufacturing overhead costs were $3 and $2 respectively, Flved manufacturing overhead costs amount $50,000 per month. The company has a practical production capacity of 10,000 units per month. Variable selling costs are $2 per unit. Fixed selling costs are $2,000 per month. During the company's first month of operations, the company produced 10,000 units and sold 6,000 units. The company's operating income under absorption costing for its first month of operations would be: Multiple Choice O The same as its variable costing operating income. O $15,000 higher than its variable casting operating Income. O 510,000 higher than its variable costing operating income. $20,000 higher than as variable costing operating income
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