Barrett,Inc

question 34

Multiple Choice

Barrett,Inc.reports the following information for the year ended December 31:

The beginning Finished Goods Inventory costs were $3300 under absorption costing and $3420 under variable costing.
What is the operating income using variable costing?

• A)$42,780
• B)$45,200
• C)$14,380
• D)$4780

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Definitions:

Connector Division

A specialized department within a company focused on the production or distribution of connector components for various applications.

Idle Capacity

The portion of a company's resources or production capability that is not being used to generate revenue or output.

Transfer Price

The price at which goods and services are sold between units of the same company.

Pump Division

A sector within a company that specializes in the production, sales, or maintenance of pumps.