Last Year, Gransky Corporation's Variable Costing Net Operating Income Was

question 96

Multiple Choice

Last year, Gransky Corporation's variable costing net operating income was $52,100 and its ending inventory increased by 400 units. Fixed manufacturing overhead cost was $7 per unit. What was the absorption costing net operating income last year?

• A) $52,100
• B) $2,800
• C) $54,900
• D) $49,300

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Definitions:

Students

Individuals engaged in learning at educational institutions, ranging from schools to universities, but not a key term related to accounting or finance directly.

Cost Drivers

Factors that cause a change in the cost of an activity, such as machine-hours, labor-hours, or quantity of materials.

Activity Variances

Differences between planned and actual costs arising from changes in activity levels in various cost centers within a business.

Cost Drivers

Factors that cause a change in the cost of an activity, used to assign overhead costs in activity-based costing systems.