Answer the Following Questions Using the Information Below

question 139

Multiple Choice

Answer the following questions using the information below:
Jupiter Corporation incurred fixed manufacturing costs of $16,000 during 2015. Other information for 2015 includes:
The budgeted denominator level is 2,000 units.
Units produced total 2,200 units.
Units sold total 1,900 units.
Variable cost per unit is $4.
Beginning inventory is zero.
The fixed manufacturing cost rate is based on the budgeted denominator level.
-The operating income using variable costing will be ________ as compared to the operating income under absorption costing.

• A) lower by $2,400
• B) lower by $4,800
• C) higher by $2,400
• D) higher by $4,800

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Definitions:

Wording

The choice or style of words used in text or speech, often analyzed for clarity, bias, or effectiveness in communication.

Survey

A research tool consisting of a series of questions or statements used to collect data from respondents, often used to gather information about attitudes, opinions, behaviors, or characteristics.

Leading Questions

Questions framed in a way that suggests a particular answer or influences the respondent towards a desired response.

Trend

A general direction in which something is developing or changing over time.