Helmers Corporation Manufactures a Single Product

question 305

Multiple Choice

Helmers Corporation manufactures a single product. Variable costing net operating income last year was $95,000 and this year was $113,800. Last year, $35,400 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $13,300 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.What was the absorption costing net operating income last year?

• A) $100,500
• B) $95,000
• C) $59,600
• D) $130,400

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Definitions:

RNA

Ribonucleic acid is a type of nucleic acid found in every living cell, serving as a messenger that transports directions from DNA for the production of proteins.

Nitrogen Bases

Organic molecules that make up the building blocks of DNA and RNA, including adenine, thymine, cytosine, guanine, and uracil.

Enzymes

Natural substances that markedly enhance the rate at which virtually all intra-cellular chemical reactions occur.

Catalysts

Substances that speed up chemical reactions without being consumed or altered in the process, critical in facilitating various biological and industrial processes.