The Following Information Pertains to Nute Corporation -Refer to the Figure

question 1

Multiple Choice

The following information pertains to Nute Corporation:
$$\begin{array} { l r } \text { Beginning inventory } & 1,000 \text { units } \\\text { Ending inventory } & 6,000 \text { units } \\\text { Direct labour per unit } & \$ 40 \\\text { Direct materials per unit } & 20 \\\text { Variable overhead per unit } & 10 \\\text { Fixed overhead per unit } & 30 \\\text { Variable selling and administrative costs per unit } & 6 \\\text { Fixed selling and administrative costs per unit } & 14\end{array}$$
-Refer to the Figure.What is the relationship between absorption costing net income and variable costing net income?

• A)Absorption costing net income is $150,000 less.
• B)Absorption costing net income is $150,000 greater.
• C)Absorption costing net income is $240,000 less.
• D)Absorption costing net income is $240,000 greater.

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Definitions:

Essential Nutrient

Nutrients required for normal body functioning that cannot be synthesized by the body and must be obtained from a dietary source.

Cells

The smallest living units of structure and function.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of life with critical roles in gene expression, enzyme function, and cellular structure.

Lipoproteins

Large molecules that are fat-soluble on the inside and water-soluble on the outside and carry lipids such as cholesterol and triglycerides through the bloodstream.