A Company Had Income of $50,000 Using Variable Costing for a Given

question 26

Multiple Choice

A company had income of $50,000 using variable costing for a given period. Beginning and ending inventories for that period were 80,000 units and 90,000 units, respectively. If the fixed overhead application rate were $10.00 per unit, what would operating income have been using full costing?

• A) ($50,000).
• B) $170,000.
• C) $150,000.
• D) $0.
• E) Cannot be determined from the information given.

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Definitions:

Structural Defects

Flaws or imperfections in the design, construction, or composition of an object or system that can lead to failure or malfunction.

Electrical Activity

The flow of electric charge that powers the functioning of cells, particularly nerve and muscle cells in the body.

Brain

The organ located in the skull responsible for central nervous system functioning, including thought, memory, emotion, touch, motor skills, vision, breathing, temperature, hunger, and every process that regulates our body.

Graph Paper

A type of paper printed with fine lines making up a grid used for drawing graphs, charts, or other precise diagrams.