Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year $ 200 Selling price Direct materials Direct labor Variable manufacturing overhead $76 $ 50 Multiple Choice $ 10 $8 Sales commission Fixed manufacturing overhead $ 291,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? The absorption costing net operating income will be lower than the variable costing net operating income by $29,100. The absorption costing net operating income will be lower than the variable costing net operating income by $101,100. The absorption costing net operating income will be higher than the variable costing net operating income by $29,100. The absorption costing net operating income will be higher than the variable costing net operating income by $101,100.
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year $ 200 Selling price Direct materials Direct labor Variable manufacturing overhead $76 $ 50 Multiple Choice $ 10 $8 Sales commission Fixed manufacturing overhead $ 291,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? The absorption costing net operating income will be lower than the variable costing net operating income by $29,100. The absorption costing net operating income will be lower than the variable costing net operating income by $101,100. The absorption costing net operating income will be higher than the variable costing net operating income by $29,100. The absorption costing net operating income will be higher than the variable costing net operating income by $101,100.
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
Related questions
Question
![20
01:05:03
Mc
Graw
Hill
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations:
Per Unit
$ 200
$ 76
$ 50
$ 10
$ 8
Multiple Choice
Per Year
Selling price
Direct materials
Direct labor
Variable manufacturing overhead
Sales commission
Fixed manufacturing overhead
Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income?
$ 291,000
The absorption costing net operating income will be lower than the variable costing net operating income by $29,100.
The absorption costing net operating income will be lower than the variable costing net operating income by $101,100.
The absorption costing net operating income will be higher than the variable costing net operating income by $29,100.
The absorption costing net operating income will be higher than the variable costing net operating income by $101,100.
Prev
20 of 25
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F480241b2-49a0-47ad-9a69-d19829cc9338%2F03108e2f-1124-4e39-ab5f-aa59dcb9355e%2F2o1lprr_processed.png&w=3840&q=75)
Transcribed Image Text:20
01:05:03
Mc
Graw
Hill
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations:
Per Unit
$ 200
$ 76
$ 50
$ 10
$ 8
Multiple Choice
Per Year
Selling price
Direct materials
Direct labor
Variable manufacturing overhead
Sales commission
Fixed manufacturing overhead
Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income?
$ 291,000
The absorption costing net operating income will be lower than the variable costing net operating income by $29,100.
The absorption costing net operating income will be lower than the variable costing net operating income by $101,100.
The absorption costing net operating income will be higher than the variable costing net operating income by $29,100.
The absorption costing net operating income will be higher than the variable costing net operating income by $101,100.
Prev
20 of 25
Next >
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning