Truman Corporation The Following Information Has Been Extracted from the Financial Records

question 175

Multiple Choice

Truman Corporation
The following information has been extracted from the financial records of Truman Corporation for its first year of operations:

• A)$21,000 higher than it would be under variable costing.
• B)$70,000 higher than it would be under variable costing.
• C)$30,000 higher than it would be under variable costing.
• D)higher than it would be under variable costing,but the exact difference cannot be determined from the information given.

Units produced	10,000
Units sold	7,000
Variable costs per unit:
Direct material	$8
Direct labor	9
Manufacturing overhead	3
SG&A	4
Fixed costs:
Manufacturing overhead	$70,000
SG&A	30,000

Refer to Truman Corporation.Based on absorption costing,Truman Corporation's income in its first year of operations will be

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Definitions:

Motivators

Factors or incentives that stimulate people's interest or enthusiasm for doing something, often linked to job satisfaction and performance.

Favourable Tax

Tax regulations or policies that are advantageous to individuals or businesses, often resulting in reduced tax liabilities.

Tax-Free

Financial or income transactions that are exempt from taxation by the government.

Key Employees

Individuals who have a significant impact on a company's performance, often holding positions that are crucial for the business's operations and strategic goals.