Moore Company produces a single product. During last year, Moore's variable production costs totaled $10,000 and its
Question:
Moore Company produces a single product. During last year, Moore's variable production costs totaled $10,000 and its fixed manufacturing overhead costs totaled $6,800. The company produced 5,000 units during the year and sold 4,600 units. There were no units in the beginning inventory. Which of the following statements is true?
a). The net operating income under absorption costing for the year will be $544 lower than net operating income under variable costing.
b). The net operating income under absorption costing for the year will be $800 lower than net operating income under variable costing.
c). The net operating income under absorption costing for the year will be $800 higher than net operating income under variable costing.
d). The net operating income under absorption costing for the year will be $544 higher than net operating income under variable costing.
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair