Yazzie, Inc The Operating Income Calculated Using Variable Costing and Absorption Costing

question 63

Multiple Choice

Yazzie, Inc. reports the following information for the year ended December 31: $$\begin{array} { | l | r | l | } \hline \text { Units sold } & 620 & \text { units } \\\hline \text { Sales price } & \$ 160 & \text { per unit } \\\hline \text { Direct materials } & \$ 26 & \text { per unit } \\\hline \text { Direct labor } & \$ 10 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 13 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 30 & \text { per unit } \\\hline \text { Variable selling and administrative costs } & \$ 5 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 14,200 & \text { per year } \\\hline\end{array}$$ The operating income calculated using variable costing and absorption costing amounted to $9300 and $11,400, respectively. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under variable costing for the year 2016.

• A) $20,700
• B) $18,600
• C) $34,720
• D) $30,380

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Definitions:

Neuromodulator

Substance that influences the sensitivity of neurons to neurotransmitters but neither strongly stimulates nor strongly inhibits neurons by itself.

Neurotransmitter

Chemical substances that transmit signals across a synapse from one neuron to another neuron, muscle cell, or gland cell.

Neurons Sensitivity

The capacity of neurons to respond to stimuli or changes in the environment, affecting how signals are transmitted through the nervous system.

Receptor Molecules

Molecules, usually found on cell surfaces, that recognize and bind to specific substances, triggering a response.