TRUE or FALSE? Under absorption costing, a portion of fixed manufacturing overhead cost is deferred in inventory when sales volume exceeds production volume. True False FMM Company provides the following manufacturing cost data for its single product: Direct $22.50 materials per unit Direct $25.75 labor per unit Variable $9.00 per overhead unit Fixed $18.30 overhead per unit FMM started the year with 510,500 units in inventory, produced 345,900 units during the year, and sold 445,700 units. The value of ending inventory for the year is: O Greater under variable costing than absorption costing The same under variable costing and absorption costing O Greater under absorption costing than variable costing Zero O None of the above TRUE or FALSE? Under variable costing, a portion of fixed manufacturing overhead cost is deferred in inventory when production volume exceeds sales volume. O True False CDH Inc, manufactures a single product. Absorption costing operating income was $2,926,675 last year and inventory increased during the year by 57,700 units. Fixed manufacturing overhead cost was $11.25 per unit for units in beginning and ending inventory. What was variable costing operating income last year at CDH Inc.? O $2,926,675 O $3,575,800 $2,277,550 O $649.125 None of the above