Leeds Electronics, Which Has Only One Product, Has Provided the Following

question 64

Multiple Choice

Leeds Electronics, which has only one product, has provided the following data concerning its most recent month of operations:
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The management accountant has discovered an error in last month's accounts. The fixed manufacturing overhead should have been stated at £230,000.
What is the net operating income for the month under variable costing if the fixed manufacturing overhead is £230,000?

• A)£(18,700)
• B)£(5,700)
• C)£16,000
• D)(£9,000)