Multiple choice 100-150 Flashcards
102) Wilson Corporation’s activity for the first six of the current year is as follows:
Machine-Hours Electrical Cost January 2,000 $ 1,560 February 3,000 $ 2,200 March 2,400 $ 1,750 April 1,900 $ 1,520 May 1,800 $ 1,480 June 2,100 $ 1,600
Using the high-low method, the variable cost per machine hour would be:
A) $0.67
B) $0.64
C) $0.40
D) $0.60
D) $0.60
103) Wilson Corporation’s activity for the first six of the current year is as follows:
Machine-Hours Electrical Cost January 2,000 $ 1,560 February 3,000 $ 2,200 March 2,400 $ 1,750 April 1,900 $ 1,520 May 1,800 $ 1,480 June 2,100 $ 1,600
Using the high-low method, the fixed portion of the electrical cost each month would be: (Round your intermediate calculations to 2 decimal places.)
A) $400
B) $760
C) $280
D) $190
A) $400
104) Inspection costs at one of Ratulowski Corporation’s factories are listed below:
Units Produced Inspection Costs April 777 $ 10,176 May 807 $ 10,404 June 798 $ 10,355 July 835 $ 10,665 August 822 $ 10,542 September 795 $ 10,313 October 805 $ 10,409 November 853 $ 10,795 December 796 $ 10,310
Management believes that inspection cost is a mixed cost that depends on units produced.
Using the high-low method, the estimate of the variable component of inspection cost per unit produced is closest to:
A) $8.14
B) $7.05
C) $0.12
D) $12.89
A) $8.14
105) The Blaine Corporation is a highly automated manufacturer. At an activity level of 6,000 machine setups, total overhead costs equal $240,000. Of this amount, depreciation totals $80,000 (all fixed) and lubrication totals $72,000 (all variable). The remaining $88,000 of the total overhead cost consists of utility cost (mixed). At an activity level of 9,000 setups, utility cost totals $112,000.
Assume that the relevant range includes all of the activity levels mentioned in this problem.
The variable cost per setup for utilities is most likely closest to:
A) $8.00 per setup
B) $12.44 per setup
C) $4.00 per setup
D) $14.66 per setup
A) $8.00 per setup
106) The Blaine Corporation is a highly automated manufacturer. At an activity level of 6,000 machine setups, total overhead costs equal $240,000. Of this amount, depreciation totals $80,000 (all fixed) and lubrication totals $72,000 (all variable). The remaining $88,000 of the total overhead cost consists of utility cost (mixed). At an activity level of 9,000 setups, utility cost totals $112,000.
Assume that the relevant range includes all of the activity levels mentioned in this problem.
The total fixed overhead costs for Blaine Corporation are most likely closest to:
A) $112,000
B) $120,000
C) $40,000
D) $80,000
B) $120,000
107) The Blaine Corporation is a highly automated manufacturer. At an activity level of 6,000 machine setups, total overhead costs equal $240,000. Of this amount, depreciation totals $80,000 (all fixed) and lubrication totals $72,000 (all variable). The remaining $88,000 of the total overhead cost consists of utility cost (mixed). At an activity level of 9,000 setups, utility cost totals $112,000.
Assume that the relevant range includes all of the activity levels mentioned in this problem.
If 7,800 setups are projected for the next period, total expected overhead cost would be closest to:
A) $156,000
B) $236,000
C) $214,400
D) $276,000
D) $276,000
108) Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
Production volume 11,500 units 14,000 units
Direct materials $ 761,300 $ 926,800
Direct labor $ 270,250 $ 329,000
Manufacturing overhead $ 1,006,500 $ 1,057,000
The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.)
A) $93.50
B) $95.85
C) $89.70
D) $109.90
D) $109.90
109) Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
Production volume 5,000 units 6,000 units
Direct materials $ 103,500 $ 124,200
Direct labor $ 282,500 $ 339,000
Manufacturing overhead $ 667,000 $ 679,800
The best estimate of the total cost to manufacture 5,300 units is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $1,116,180
B) $1,062,915
C) $1,080,000
D) $1,009,650
C) $1,080,000
110) Electrical costs at one of Rome Corporation’s factories are listed below:
Machine-Hours Electrical Cost March 458 $ 1,007 April 423 $ 934 May 440 $ 979 June 409 $ 902 July 426 $ 952 August 372 $ 822 September 414 $ 926 October 431 $ 949 November 468 $ 1,025
Management believes that electrical cost is a mixed cost that depends on machine-hours.
Using the high-low method, the estimate of the variable component of electrical cost per machine-hour is closest to:
A) $2.11
B) $1.80
C) $2.21
D) $0.47
A) $2.11
111) Callander Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $140.50 per unit.
Sales volume (units) 6,000 7,000
Cost of sales $ 497,400 $ 580,300
Selling and administrative costs $ 273,600 $ 294,700
The best estimate of the total monthly fixed cost is: (Round your intermediate calculations to 2 decimal places.)
A) $875,000
B) $147,000
C) $771,000
D) $823,000
B) $147,000
112) Callander Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $140.50 per unit.
Sales volume (units) 6,000 7,000
Cost of sales $ 497,400 $ 580,300
Selling and administrative costs $ 273,600 $ 294,700
The best estimate of the total variable cost per unit is: (Round your intermediate calculations to 2 decimal places.)
A) $82.90
B) $128.50
C) $104.00
D) $125.00
C) $104.00
113) Callander Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $140.50 per unit.
Sales volume (units) 6,000 7,000
Cost of sales $ 497,400 $ 580,300
Selling and administrative costs $ 273,600 $ 294,700
The best estimate of the total contribution margin when 6,300 units are sold is: (Round your intermediate calculations to 2 decimal places.)
A) $75,600
B) $97,650
C) $362,880
D) $229,950
D) $229,950
114) The management of Casablanca Manufacturing Corporation believes that machine-hours is an appropriate measure of activity for overhead cost. Shown below are machine-hours and total overhead costs for the past six months:
Machine-Hours Overhead Cost January 150,000 $ 339,000 February 140,000 $ 328,000 March 160,000 $ 350,000 April 130,000 $ 319,500 May 170,000 $ 362,500 June 200,000 $ 400,000
Assume that the relevant range includes all of the activity levels mentioned in this problem.
If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total overhead cost be using the high-low method? (Round your intermediate calculations to 2 decimal places.)
A) $212,750
B) $359,750
C) $382,750
D) $381,700
C) $382,750
115) The management of Casablanca Manufacturing Corporation believes that machine-hours is an appropriate measure of activity for overhead cost. Shown below are machine-hours and total overhead costs for the past six months:
Machine-Hours Overhead Cost January 150,000 $ 339,000 February 140,000 $ 328,000 March 160,000 $ 350,000 April 130,000 $ 319,500 May 170,000 $ 362,500 June 200,000 $ 400,000
Assume that the relevant range includes all of the activity levels mentioned in this problem.
What is Casablanca’s independent variable?
A) the year
B) the machine hours
C) the total overhead cost
D) the relevant range
B) the machine hours
116) Jorgenson Corporation has provided the following data for the first five months of the year:
Machine Hours Lubrication Cost January 240 $ 1,500 February 320 $ 1,600 March 400 $ 1,740 April 300 $ 1,580 May 340 $ 1,680
Using the least-squares regression method of analysis, the estimated monthly fixed component of lubrication cost is closest to:
A) $1,050
B) $1,060
C) $1,121
D) $1,144
C) $1,121
117) Electrical costs at one of Rome Corporation’s factories are listed below:
Machine-Hours Electrical Cost March 458 $ 1,007 April 423 $ 934 May 440 $ 979 June 409 $ 902 July 426 $ 952 August 372 $ 822 September 414 $ 926 October 431 $ 949 November 468 $ 1,025
Management believes that electrical cost is a mixed cost that depends on machine-hours.
Using the high-low method, the estimate of the fixed component of electrical cost per month is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $822
B) $743
C) $38
D) $944
C) $38
118) Callander Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $140.50 per unit.
Sales volume (units) 6,000 7,000
Cost of sales $ 497,400 $ 580,300
Selling and administrative costs $ 273,600 $ 294,700
The best estimate of the total monthly fixed cost is: (Round your intermediate calculations to 2 decimal places.)
A) $875,000
A) $147,000
B) $771,000
C) $823,000
A) $147,000
119) Callander Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $140.50 per unit.
Sales volume (units) 6,000 7,000
Cost of sales $ 497,400 $ 580,300
Selling and administrative costs $ 273,600 $ 294,700
The best estimate of the total variable cost per unit is: (Round your intermediate calculations to 2 decimal places.)
A) $82.90
B) $128.50
C) $104.00
D) $125.00
C) $104.00
120) Callander Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $140.50 per unit.
Sales volume (units) 6,000 7,000
Cost of sales $ 497,400 $ 580,300
Selling and administrative costs $ 273,600 $ 294,700
The best estimate of the total contribution margin when 6,300 units are sold is: (Round your intermediate calculations to 2 decimal places.)
A) $75,600
B) $97,650
C) $362,880
D) $229,950
D) $229,950
121) The management of Casablanca Manufacturing Corporation believes that machine-hours is an appropriate measure of activity for overhead cost. Shown below are machine-hours and total overhead costs for the past six months:
Machine-Hours Overhead Cost January 150,000 $ 339,000 February 140,000 $ 328,000 March 160,000 $ 350,000 April 130,000 $ 319,500 May 170,000 $ 362,500 June 200,000 $ 400,000
Assume that the relevant range includes all of the activity levels mentioned in this problem.
If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total overhead cost be using the high-low method? (Round your intermediate calculations to 2 decimal places.)
A) $212,750
B) $359,750
C) $382,750
D) $381,700
C) $382,750
122) Hiss Corporation’s activity for the last six months is as follows:
Machine Hours Electrical Cost July 2,000 $ 1,560 August 3,000 $ 2,230 September 2,400 $ 1,750 October 1,900 $ 1,520 November 1,800 $ 1,450 December 2,100 $ 1,600
Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $260
B) $235
C) $280
D) $800
C) $280
123) Jorgenson Corporation has provided the following data for the first five months of the year:
Machine Hours Lubrication Cost January 240 $ 1,500 February 320 $ 1,600 March 400 $ 1,740 April 300 $ 1,580 May 340 $ 1,680
Using the high-low method of analysis, the estimated variable lubrication cost per machine hour is closest to:
A) $1.50
B) $1.25
C) $0.67
D) $1.40
A) $1.50
124) The management of Casablanca Manufacturing Corporation believes that machine-hours is an appropriate measure of activity for overhead cost. Shown below are machine-hours and total overhead costs for the past six months:
Machine-Hours Overhead Cost January 150,000 $ 339,000 February 140,000 $ 328,000 March 160,000 $ 350,000 April 130,000 $ 319,500 May 170,000 $ 362,500 June 200,000 $ 400,000
Assume that the relevant range includes all of the activity levels mentioned in this problem.
If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total overhead cost be using the high-low method? (Round your intermediate calculations to 2 decimal places.)
A) $212,750
B) $359,750
C) $382,750
D) $381,700
C) $382,750
125) Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
Production volume 12,500 units 14,000 units
Direct materials $ 713,750 $ 799,400
Direct labor $ 256,250 $ 287,000
Manufacturing overhead $ 1,004,700 $ 1,027,350
The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.)
A) $83.75
B) $92.70
C) $81.40
D) $77.60
B) $92.70
126) How would the following costs be classified (product or period) under variable costing at a retail clothing store?
Cost of purchasing clothing Sales commissions A) Product Product B) Product Period C) Period Product D) Period Period A) Choice A B) Choice B C) Choice C D) Choice D
B) Choice B
127) A cost that would be included in product costs under both absorption costing and variable costing is:
A) supervisory salaries.
B) factory rent.
C) variable manufacturing costs.
D) variable selling expenses.
C) variable manufacturing costs.
128) Assuming that direct labor is a variable cost, the primary difference between the absorption and variable costing is that:
A) variable costing treats only direct materials and direct labor as product cost while absorption costing treats direct materials, direct labor, and the variable portion of manufacturing overhead as product costs.
B) variable costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs while absorption costing treats only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs.
C) variable costing treats only direct materials, direct labor, the variable portion of manufacturing overhead, and the variable portion of selling and administrative expenses as product cost while absorption costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs.
D) variable costing treats only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs while absorption costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs.
D) variable costing treats only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs while absorption costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs.
129) A reason why absorption costing income statements are sometimes difficult to interpret is that:
A) they omit variable expenses entirely in computing net operating income.
B) they shift portions of fixed manufacturing overhead from period to period according to changing levels of inventories.
C) they include all fixed manufacturing overhead on the income statement each year as a period cost.
D) they ignore inventory levels in determining cost of goods sold.
B) they shift portions of fixed manufacturing overhead from period to period according to changing levels of inventories.
130) Which of the following will usually be found on an income statement prepared using absorption costing?
Contribution Margin Gross Margin A) Yes Yes B) Yes No C) No Yes D) No No A) Choice A B) Choice B C) Choice C D) Choice D
C) Choice C
131) Net operating income computed under variable costing would exceed net operating income computed using absorption costing if:
A) units sold exceed units produced.
B) units sold are less than units produced.
C) units sold equal units produced.
D) the average fixed cost per unit is zero.
A) units sold exceed units produced.
132) When sales exceed production and the company uses the LIFO inventory flow assumption, the net operating income reported under variable costing generally will be:
A) less than net operating income reported under absorption costing.
B) greater than net operating income reported under absorption costing.
C) equal to net operating income reported under absorption costing.
D) higher or lower because no generalization can be made.
B) greater than net operating income reported under absorption costing.
133) Higado Confectionery Corporation has a number of store locations throughout North America. In income statements segmented by store, which of the following would be considered a common fixed cost with respect to the stores?
A) store manager salaries
B) store building depreciation expense
C) the cost of corporate advertising aired during the Super Bowl
D) cost of goods sold at each store
C) the cost of corporate advertising aired during the Super Bowl
134) When using data from a segmented income statement, the dollar sales for a segment to break even is equal to:
A) Traceable fixed expenses ÷ Segment CM ratio
B) Common fixed expenses ÷ Segment CM ratio
C) (Traceable fixed expenses + Common fixed expenses) ÷ Segment CM ratio
D) Non-traceable fixed expenses ÷ Segment CM ratio
A) Traceable fixed expenses ÷ Segment CM ratio
135) Rhea Corporation has provided the following data for its two most recent years of operation:
Selling price per unit $ 67
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials $ 10
Direct labor $ 5
Variable manufacturing overhead $ 3
Fixed manufacturing overhead per year $ 252,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 4
Fixed selling and administrative expense per year $ 65,000
Year 1 Year 2
Units in beginning inventory 0 1,000
Units produced during the year 9,000 7,000
Units sold during the year 8,000 7,000
Units in ending inventory 1,000 1,000
The net operating income (loss) under absorption costing in Year 2 is closest to:
A) $6,000
B) $99,000
C) ($2,000)
D) $71,000
A) $6,000
136) A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Units in beginning inventory 0
Units produced 4,700
Units sold 4,600
Units in ending inventory 100
Variable costs per unit:
Direct materials $ 55
Direct labor $ 57
Variable manufacturing overhead $ 20
Variable selling and administrative expense $ 18
Fixed costs:
Fixed manufacturing overhead $ 98,700
Fixed selling and administrative expense $ 46,000
What is the variable costing unit product cost for the month?
A) $150 per unit
B) $171 per unit
C) $132 per unit
D) $139 per unit
C) $132 per unit
137) Kray Incorporated, which produces a single product, has provided the following data for its most recent month of operations:
Number of units produced 3,200
Variable costs per unit:
Direct materials $ 31
Direct labor $ 23
Variable manufacturing overhead $ 10
Variable selling and administrative expense $ 6
Fixed costs:
Fixed manufacturing overhead $ 262,400
Fixed selling and administrative expense $ 268,800
There were no beginning or ending inventories. The variable costing unit product cost was:
A) $146 per unit
B) $64 per unit
C) $70 per unit
D) $60 per unit
B) $64 per unit
138) A company produces a single product. Variable production costs are $12.80 per unit and variable selling and administrative expenses are $3.80 per unit. Fixed manufacturing overhead totals $44,000 and fixed selling and administration expenses total $48,000. Assuming a beginning inventory of zero, production of 4,800 units and sales of 4,000 units, the dollar value of the ending inventory under variable costing would be:
A) $10,240
B) $17,440
C) $13,280
D) $7,200
A) $10,240
139) A company produces a single product. Variable production costs are $21 per unit and variable selling and administrative expenses are $4 per unit. Fixed manufacturing overhead totals $30,000 and fixed selling and administration expenses total $36,000. Assuming a beginning inventory of zero, production of 6,000 units and sales of 5,600 units, the dollar value of the ending inventory under variable costing would be:
A) $10,000
B) $8,400
C) $12,000
D) $14,400
B) $8,400
140) Foggs Corporation has provided the following data for its two most recent years of operation:
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials $ 10
Direct labor $ 6
Variable manufacturing overhead $ 5
Fixed manufacturing overhead per year $ 520,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 6
Fixed selling and administrative expense per year $ 63,000
Year 1 Year 2
Units in beginning inventory 0 1,000
Units produced during the year 10,000 13,000
Units sold during the year 9,000 11,000
Units in ending inventory 1,000 3,000
The unit product cost under absorption costing in Year 2 is closest to:
A) $40.00
B) $21.00
C) $67.00
D) $61.00
D) $61.00
141) Badoni Corporation has provided the following data for its two most recent years of operation:
Selling price per unit $ 85
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials $ 10
Direct labor $ 6
Variable manufacturing overhead $ 4
Fixed manufacturing overhead per year $ 96,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 5
Fixed selling and administrative expense per year $ 77,000
Year 1 Year 2
Units in beginning inventory 0 1,000
Units produced during the year 8,000 6,000
Units sold during the year 7,000 3,000
Units in ending inventory 1,000 4,000
The net operating income (loss) under variable costing in Year 2 is closest to:
A) $180,000
B) $195,000
C) $59,000
D) $7,000
D) $7,000
142) Stoneberger Corporation produces a single product and has the following cost structure:
Number of units produced each year 4,000
Variable costs per unit:
Direct materials $ 50
Direct labor $ 72
Variable manufacturing overhead $ 6
Variable selling and administrative expense $ 3
Fixed costs per year:
Fixed manufacturing overhead $ 296,000
Fixed selling and administrative expense $ 76,000
The variable costing unit product cost is:
A) $128 per unit
B) $125 per unit
C) $202 per unit
D) $131 per unit
A) $128 per unit
143) Silver Corporation produces a single product. Last year, the company’s variable production costs totaled $7,500 and its fixed manufacturing overhead costs totaled $4,500. The company produced 3,000 units during the year and sold 2,400 units. There were no units in the beginning inventory. Which of the following statements is true?
A) Under variable costing, the units in the ending inventory will be costed at $4.00 each.
B) The net operating income under absorption costing for the year will be $900 lower than the net operating income under variable costing.
C) The ending inventory under variable costing will be $900 lower than the ending inventory under absorption costing.
D) Under absorption costing, the units in ending inventory will be costed at $2.50 each.
C) The ending inventory under variable costing will be $900 lower than the ending inventory under absorption costing.
144) Simila Corporation has provided the following data for its most recent year of operation:
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials $ 11
Direct labor $ 7
Variable manufacturing overhead $ 5
Fixed manufacturing overhead per year $ 308,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 5
Fixed selling and administrative expense per year $ 81,000
Units in beginning inventory 0
Units produced during the year 11,000
Units sold during the year 9,000
Units in ending inventory 2,000
Which of the following statements is true?
A) The amount of fixed manufacturing overhead released from inventories is $459,000
B) The amount of fixed manufacturing overhead deferred in inventories is $56,000
C) The amount of fixed manufacturing overhead released from inventories is $56,000
D) The amount of fixed manufacturing overhead deferred in inventories is $459,000
B) The amount of fixed manufacturing overhead deferred in inventories is $56,000
145) A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price $ 145
Units in beginning inventory 0
Units produced 2,440
Units sold 2,280
Units in ending inventory 160
Variable costs per unit:
Direct materials $ 49
Direct labor $ 17
Variable manufacturing overhead $ 17
Variable selling and administrative expense $ 10
Fixed costs:
Fixed manufacturing overhead $ 85,400
Fixed selling and administrative expense $ 22,800
The total gross margin for the month under absorption costing is:
A) $61,560
B) $15,960
C) $107,760
D) $118,560
A) $61,560
146) A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price $ 117
Units in beginning inventory 0
Units produced 2,900
Units sold 2,500
Units in ending inventory 400
Variable costs per unit:
Direct materials $ 32
Direct labor $ 45
Variable manufacturing overhead $ 2
Variable selling and administrative expense $ 9
Fixed costs:
Fixed manufacturing overhead $ 43,500
Fixed selling and administrative expense $ 15,000
The total gross margin for the month under absorption costing is:
A) $72,500
B) $95,100
C) $20,000
D) $57,500
D) $57,500
147) Bellue Incorporated manufactures a single product. Variable costing net operating income was $82,800 last year and its inventory decreased by 2,500 units. Fixed manufacturing overhead cost was $4 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year?
A) $10,000
B) $72,800
C) $82,800
D) $85,300
B) $72,800
148) Bellue Incorporated manufactures a single product. Variable costing net operating income was $96,300 last year and its inventory decreased by 2,600 units. Fixed manufacturing overhead cost was $1 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year?
A) $2,600
B) $93,700
C) $96,300
D) $98,900
B) $93,700
149) A company that produces a single product had a net operating income of $90,000 using variable costing and a net operating income of $125,750 using absorption costing. Total fixed manufacturing overhead was $58,650 and production was 11,500 units. This year was the first year of operations. Between the beginning and the end of the year, the inventory level:
A) decreased by 35,750 units
B) increased by 35,750 units
C) decreased by 7,010 units
D) increased by 7,010 units
D) increased by 7,010 units
150) A company that produces a single product had a net operating income of $65,000 using variable costing and a net operating income of $95,000 using absorption costing. Total fixed manufacturing overhead was $60,000 and production was 10,000 units. This year was the first year of operations. Between the beginning and the end of the year, the inventory level:
A) decreased by 5,000 units
B) increased by 5,000 units
C) decreased by 30,000 units
D) increased by 30,000 units
B) increased by 5,000 units
