Vanstee Corporation Manufactures a Variety of Products

question 75

Multiple Choice

Vanstee Corporation manufactures a variety of products. Variable costing net operating income last year was $60,000 and this year was $67,000. Last year, $37,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing. This year, $8,000 in fixed manufacturing overhead costs were released from inventory under absorption costing.
-What was the absorption costing net operating income last year?

• A)$60,000
• B)$23,000
• C)$97,000
• D)$89,000

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