In the Month Just Ended, Aldebraun Industries Produced 40,000 Units

question 40

Multiple Choice

In the month just ended, Aldebraun Industries produced 40,000 units and sold 37,000 units. There were 2,000 units in finished goods inventory at the start of the month. Manufacturing costs are stable from month to month. The fixed overhead rate was £8 per unit. Aldebraun uses absorption costing. If Aldebraun used variable costing, the difference in net income would have been

• A)£24,000.
• B)£16,000.
• C)£40,000.
• D)£8,000.

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