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.

---

Definitions:

Fairplay Rule

An ethical guideline ensuring fairness and honesty in transactions and interactions, often in sports or business.

Core Principles

Core principles are fundamental beliefs or values that guide the behavior and practices of an individual or organization.

Detail Salesperson

A sales professional specialized in providing extensive and meticulous information about a product or service.

Order-Taker

A salesperson whose primary role is to take orders from customers, rather than actively sell or promote products.