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:

Filing Dividers

Tools used in organizing files or documents into sections within a folder or binder, making it easier to locate specific information.

Heavy

Having a great weight or being of high density.

Sturdy

Describes an object or structure that is strongly and solidly built.

Filing Systems

Organized methods for storing and retrieving documents or digital information efficiently.