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.