The level of inventory of a manufactured product has increased by 8,389 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $6.00 Unit operating expenses of the period 3.00 5.00 The effect on operating income if absorption costing is used rather than variable costing would be a Oa. $92,279 increase Ob. $92,279 decrease Oc. $50,334 decrease Od. $50,334 increase $10.00
The level of inventory of a manufactured product has increased by 8,389 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $6.00 Unit operating expenses of the period 3.00 5.00 The effect on operating income if absorption costing is used rather than variable costing would be a Oa. $92,279 increase Ob. $92,279 decrease Oc. $50,334 decrease Od. $50,334 increase $10.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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