Lasorsa Corporation Manufactures a Single Product

question 183

Multiple Choice

Lasorsa Corporation manufactures a single product. Variable costing net operating income last year was $86,000 and this year was $98,000. Last year, $4,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $27,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing. What was the absorption costing net operating income last year?

• A)$63,000
• B)$86,000
• C)$90,000
• D)$82,000

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Definitions:

Null Hypothesis

The default hypothesis that there is no effect or no difference, and it is tested against an alternative hypothesis.

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Alternative Hypothesis

A statement that proposes a relationship between variables, opposite to the null hypothesis, indicating a significant effect or difference.

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