Helmers Corporation Manufactures a Single Product

question 245

Multiple Choice

Helmers Corporation manufactures a single product. Variable costing net operating income last year was $86,000 and this year was $103,000. Last year, $32,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $12,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.
-What was the absorption costing net operating income last year?

• A) $106,000
• B) $86,000
• C) $54,000
• D) $118,000

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Definitions:

Percentage

A fraction or ratio expressed as a part of 100.

Improper Fraction

A fraction where the numerator is greater than or equal to the denominator, indicating a value greater than or equal to one.

Unit Value

A measurement or quantity used as a standard or fixed amount in calculations or transactions.