The Following Information Pertains to Brian Stone Corporation What Is the Difference Between Operating Incomes Under Absorption Costing

question 68

Multiple Choice

The following information pertains to Brian Stone Corporation: $\begin{array}{lr}\text { Beginning fixed manufacturing overhead in inventory } & \$ 60,000 \\\text { Ending fixed manufacturing overhead in inventory } & 45,000 \\\text { Beginning variable manufacturing overhead in inventory } & \$ 30,000 \\\text { Ending variable manufacturing overhead in inventory } & 14,250 \\& \\\text { Fixed selling and administrative costs } & \$ 724,000 \\\text { Units produced } & 5,000 \text { units } \\\text { Units sold } & 4,800 \text { units }\end{array}$ What is the difference between operating incomes under absorption costing and variable costing?

• A) $750
• B) $7,500
• C) $15,000
• D) $30,750

---

Definitions:

Incidence of Skin Cancer

The frequency or number of new cases of skin cancer occurring in a specified population during a stated period of time.

UV's

Short for Ultraviolet rays, a type of electromagnetic radiation coming from the sun and artificial sources like tanning beds.

Coefficient of Determination

A measure that indicates the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Pearson Coefficient

A measure of the linear correlation between two variables, ranging from -1 to 1, where 1 means a perfect positive correlation and -1 means a perfect negative correlation.