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:

Polyandry

A mating system in which a female has multiple male partners during a breeding season, often leading to increased genetic diversity among her offspring.

Polygynandry/Promiscuity

A mating system in which both males and females have multiple mating partners during a breeding season.

Great Tinamous

A species of bird found in Central and South America, characterized by its ground-dwelling habits and distinctive calls.

Guard

To protect or defend a person, place, or possession, often from potential threats or danger.