The Difference Between the Variable Ending Inventory Cost and the Absorption

question 2

Multiple Choice

The difference between the variable ending inventory cost and the absorption ending inventory cost is:

• A)800 units times $15 per unit indirect manufacturing cost.
• B)800 units times $10 per unit material cost.
• C)800 units times $20 per unit variable conversion cost plus $15 per unit indirect manufacturing cost.
• D)800 units times $20 per unit variable conversion cost plus $15 per unit indirect manufacturing cost plus $16.67 per unit indirect operating costs.