year of operations appear below: Units produced Units sold Selling price per unit Direct Materials Direct Labor Variable OH Variable selling & administrative Fixed OH Fixed selling & administrative If the company produces 12,000 units and sells 13,000 units in the second year, I higher or lower will the variable operating income be compared to the absorption op 10,000.00 9,000.00 60.00 15.00 5.00 2.00 4.00 P200,000.00 P 70,000.00

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Vacationnatalaga Corporation produces a single product. Data concerning the company's first
year of operations appear below:
Units produced
Units sold
Selling price per unit
Direct Materials
Direct Labor
Variable OH
Variable selling & administrative
Fixed OH
Fixed selling & administrative
If the company produces 12,000 units and sells 13,000 units in the second year, how much
higher or lower will the variable operating income be compared to the absorption operating
income. Indicate your answer as a positive number if higher ex. 123456 or a negative number if
lower ex. (123456).
10,000.00
9,000.00
60.00
15.00
5.00
2.00
4.00
P200,000.00
P 70,000.00
Transcribed Image Text:Vacationnatalaga Corporation produces a single product. Data concerning the company's first year of operations appear below: Units produced Units sold Selling price per unit Direct Materials Direct Labor Variable OH Variable selling & administrative Fixed OH Fixed selling & administrative If the company produces 12,000 units and sells 13,000 units in the second year, how much higher or lower will the variable operating income be compared to the absorption operating income. Indicate your answer as a positive number if higher ex. 123456 or a negative number if lower ex. (123456). 10,000.00 9,000.00 60.00 15.00 5.00 2.00 4.00 P200,000.00 P 70,000.00
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