Use the Following Information for Questions

question 77

Multiple Choice

Use the following information for questions
Nielson Corp. sells its product for $6,600 per unit. Variable costs per unit are: manufacturing, $3,600, and selling and administrative, $75. Fixed costs are: $18,000 manufacturing overhead, and $24,000 selling and administrative. There was no beginning inventory at 1/1/15. Production was 20 units per year in 2018-2020. Sales were 20 units in 2018, 16 units in 2019, and 24 units in 2020.
-For the three years 2018-2020,

• A) absorption costing income exceeds variable costing income by $8,000.
• B) absorption costing income equals variable costing income.
• C) variable costing income exceeds absorption costing income by $8,000.
• D) absorption costing income may be greater than, equal to, or less than variable costing income, depending on the situation.

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Definitions:

Occipital Lobes

The region of the brain located at the back of the head, responsible for processing visual information.

Pledge of Allegiance

A vow of loyalty to the flag and nation of the United States, often recited in schools and public events.

Memory Deficit

An impairment in the ability to remember information or events, which can occur due to neurological conditions, aging, or psychological factors.

Temporal Lobes

Regions of the brain located on either side of the head, involved in processing auditory information and encoding memory.