Vision Tester, Inc Given This Information, Which of the Following Is True?
A)Net

question 116

Multiple Choice

Vision Tester, Inc., a manufacturer of optical glass, began operations on February 1 of the current year.During this time, the company produced 900,000 units and sold 800,000 units at a sales price of $12 per unit.Cost information for this year is shown in the following table: $\begin{array}{l}\text { Production costs }\\\begin{array}{ll}\text { Direct materials } & \$ 80 \text { per unit } \\\text { Direct labor } & \$ 70 \text { per unit } \\\text { Variable overhead } & \$ 500,000 \text { in total } \\\text { Fixed overhead } & \$ 450,000 \text { in total } \\\text { Jon-production costs } & \\\text { Variable selling and administrative } & \$ 30,000 \text { in total } \\\text { Fixed selling and administrative } & \$ 490,000 \text { in total }\end{array}\end{array}$ Given this information, which of the following is true?

• A)Net income under variable costing will exceed net income under absorption costing by $50,000.
• B)Net income under absorption costing will exceed net income under variable costing by $50,000.
• C)Net income will be the same under both absorption and variable costing.
• D)Net income under variable costing will exceed net income under absorption costing by $60,000.
• E)Net income under absorption costing will exceed net income under variable costing by $60,000.

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Definitions:

Unconscious Motives

Underlying influences on behavior that stem from desires or feelings of which an individual is not aware.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing how they think, feel, and behave.

Conditioned

The process of learning by which a stimulus becomes associated with a specific response through conditioning, often used in behaviorism.

Behavioralist

A psychologist or researcher who studies behavior through observable actions and reactions, often ignoring mental state theories.