Subject: acounting The level of inventory of a manufactured product has increased by8,966 units during a period. The following data are also available:Unit manufacturing costs of the periodUnit operating expenses of the periodThe effect on operating income if absorption costing is used ratherthan variable costing would be aOa. $26,898 decreaseOb. $35,864 decreaseOc. $26,898 increaseVariable Fixed$10.00 $3.001.00 1.00mar

Absorption costing: Absorption costing is also called traditional costing. This method of costing…

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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 3BE: Variable costingsales exceed production The beginning inventory is 52,800 units. All of the units...

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