Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units and then produced 8,000 units and sold 10,000 units during its second year of operations: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Multiple Choice $80,000 If the company's absorption costing net operating income during its second year of operations was $20,000, what was its variable costing net operating income or loss during its second year of operations? $140,000 $40,000 Per Unit $75 $ 50 $ 10 $(40,000) Per Year $ 300,000
Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units and then produced 8,000 units and sold 10,000 units during its second year of operations: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Multiple Choice $80,000 If the company's absorption costing net operating income during its second year of operations was $20,000, what was its variable costing net operating income or loss during its second year of operations? $140,000 $40,000 Per Unit $75 $ 50 $ 10 $(40,000) Per Year $ 300,000
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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