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

See similar textbooks

Similar questions

Please show work.
The level of inventory of a manufactured product has increased by 7,848 units during a period. The following data are also available Variable Fixed Unit manufacturing costs of the period $11.00 $3.00 Unit operating expenses of the period 2.00 5.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $23,544 increase Ob. $62,784 decrease Oc. $62,784 increase Od. $23,544 decrease
In the cost-volume- profit graph (above), what is represented by the point marked "A"? Question 1 options: Breakeven point Fixed expenses Operating income area Operating loss area
The level of inventory of a manufactured product has increased by 7,949 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $12.00 $5.00 Unit operating expenses of the period 4.00 4.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) a.$71,541 decrease b.$39,745 increase c.$39,745 decrease d.$71,541 increase
If variable cost of goods sold totaled $101,100 for the year (16,850 units at $6 each) and the planned variable cost of goods sold totaled $109,680 (13,710 units at $8 each), the effect of the unit cost factor on the change in contribution margin is: a.$18,840 decrease b.$33,700 increase c.$33,700 decrease d.$18,840 increase
Prepare the Income Statement for the year ended 31 December 2022 using the Marginal costing and Absorption costing methods. Opening inventory Nil Number of units manufactured 5 000 Number of units sold 4 500 Selling price per unit R200 Direct material cost per unit R14 Direct labour cost per unit R23 Variable manufacturing overheads cost per unit R12 Variable selling and administrative cost per unit sold R3 Fixed manufacturing overhead cost R200 000 Fixed selling and administrative costs R400 000
Given help with question
s
None
Subject: acounting