The level of inventory of a manufactured product has increased by 7,741 units during a period. The following data are also available:| | Variable | Fixed ||--------------------------|----------|-------|| Unit manufacturing costs of the period | $10.00 | $7.00 || Unit operating expenses of the period | $4.00 | $1.00 |The effect on operating income if variable costing is used rather than absorption costing would be a(n):- A. $61,928 decrease- B. $16,129 increase- C. $16,129 decrease- D. $54,187 decrease

Under variable costing, the fixed costs are to be treated as full cost incurred but under absorption…

The level of inventory of a manufactured product has increased by 7,741 units during a period. The following data are also available: Variable Fixed $10.00 $7.00 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a[n) O $61.928 decrease Ob 161928 increase Unit manufacturing costs of the period Unit operating expenses of the period O $54.187 increase d. $54.187 decrease

The level of inventory of a manufactured product has increased by 7,741 units during a period. The following data are also available: Variable Fixed $10.00 $7.00 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a[n) O $61.928 decrease Ob 161928 increase Unit manufacturing costs of the period Unit operating expenses of the period O $54.187 increase d. $54.187 decrease

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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