Which costing method, absorption or variable, would show higher operating income and by what amount? * H Selected data concerning the operations of NUBD Company for the year ended December 31, 2021 is available as follows: Units produced Units sold Direct materials used Direct labor incurred Fixed factory overhead 10,000 Variable factory overhead 9,000 Fixed selling & admin. exp P 40,000 Variable selling & admin. exp. P 20,000 Finished goods inventory, beg. P 25,000 P12,000 30,000 4,500 none There were no work in process inventory at the beginning and end of 2021. O Absorption costing, P2,500 O Variable costing, P2,500 O Absorption costing, P5,500 O Variable costing, P5,500
Which costing method, absorption or variable, would show higher operating income and by what amount? * H Selected data concerning the operations of NUBD Company for the year ended December 31, 2021 is available as follows: Units produced Units sold Direct materials used Direct labor incurred Fixed factory overhead 10,000 Variable factory overhead 9,000 Fixed selling & admin. exp P 40,000 Variable selling & admin. exp. P 20,000 Finished goods inventory, beg. P 25,000 P12,000 30,000 4,500 none There were no work in process inventory at the beginning and end of 2021. O Absorption costing, P2,500 O Variable costing, P2,500 O Absorption costing, P5,500 O Variable costing, P5,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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17
Transcribed Image Text:Which costing method, absorption or variable, would show higher operating income and by
what amount? *
Selected data concerning the operations of NUBD Company for the year ended
December 31, 2021 is available as follows:
[Units produced
Units sold
Direct materials used
Direct labor incurred
Fixed factory overhead
10,000 Variable factory overhead
9,000 Fixed selling & admin. exp
P 40,000 Variable selling & admin. exp.
P 20,000 Finished goods inventory, beg.
P 25,000
P12,000
30,000
4,500
none
There were no work in process inventory at the beginning and end of 2021.
O Absorption costing, P2,500
O Variable costing, P2,500
O Absorption costing, P5,500
Variable costing, P5,500
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