The level of inventory of a manufactured product has increased by 8,966 units during a period. The following data are also available: Unit manufacturing costs of the period Unit operating expenses of the period Variable Fixed $10.00 $3.00 1.00 1.00 The effect on operating income if absorption costing is used rather than variable costing would be a Oa. $26,898 decrease Ob. $35,864 decrease Oc. $26,898 increase
The level of inventory of a manufactured product has increased by 8,966 units during a period. The following data are also available: Unit manufacturing costs of the period Unit operating expenses of the period Variable Fixed $10.00 $3.00 1.00 1.00 The effect on operating income if absorption costing is used rather than variable costing would be a Oa. $26,898 decrease Ob. $35,864 decrease Oc. $26,898 increase
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting

Transcribed Image Text:The level of inventory of a manufactured product has increased by
8,966 units during a period. The following data are also available:
Unit manufacturing costs of the period
Unit operating expenses of the period
The effect on operating income if absorption costing is used rather
than variable costing would be a
Oa. $26,898 decrease
Ob. $35,864 decrease
Oc. $26,898 increase
Variable Fixed
$10.00 $3.00
1.00 1.00
mar
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