The following information pertains to Mayberry Corporation: Beginning inventory1,000 unitsEnding inventory6,000 unitsDirect labor per unit$40Direct materials per unit20Variable overhead per unit10Fixed overhead per unit30Variable selling and admin. costs per unit6Fixed selling and admin. costs per unit14Absorption costing income would be ____ variable costing income. a.$240,000 less than b.$150,000 greater than c.$240,000 greater than d.$150,000 less than

Particulars Amount Fixed overhead on Ending inventory (6,000 units x $30 per unit) $180,000…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information pertains to Mayberry Corporation:

Beginning inventory	1,000 units
Ending inventory	6,000 units
Direct labor per unit	$40
Direct materials per unit	20
Variable overhead per unit	10
Fixed overhead per unit	30
Variable selling and admin. costs per unit	6
Fixed selling and admin. costs per unit	14

Absorption costing income would be ____ variable costing income.

	a.	$240,000 less than
	b.	$150,000 greater than
	c.	$240,000 greater than
	d.	$150,000 less than

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