Moore Company Produces a Single Product

question 94

Multiple Choice

Moore Company produces a single product.During last year,Moore's variable production costs totaled $10,000 and its fixed manufacturing overhead costs totaled $6,800.The company produced 5,000 units during the year and sold 4,600 units.There were no units in the beginning inventory.Which of the following statements is true?

• A)The net operating income under absorption costing for the year will be $800 higher than net operating income under variable costing.
• B)The net operating income under absorption costing for the year will be $544 higher than net operating income under variable costing.
• C)The net operating income under absorption costing for the year will be $544 lower than net operating income under variable costing.
• D)The net operating income under absorption costing for the year will be $800 lower than net operating income under variable costing.