Yuvil Corporation Produces a Single Product

question 230

Multiple Choice

Yuvil Corporation produces a single product. At the end of the company's first year of operations, 1,000 units of inventory remained on hand. Its variable manufacturing overhead cost is $45 per unit and its fixed manufacturing overhead cost is $10 per unit. Yuvil's absorption costing net operating income would be higher than its variable costing net operating income by:

• A)$0
• B)$10,000
• C)$35,000
• D)$45,000

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Definitions:

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