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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
Transcribed Image Text: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
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