During Its First Year of Operations, Holt Manufacturing Company Incurred

question 91

Multiple Choice

During its first year of operations, Holt Manufacturing Company incurred the following costs to produce 200,000 units of its only product: Holt also incurred the following costs in the sale of 180,000 units of product during its first year: Assume that direct labor is a variable cost.
-If Holt's variable costing net operating income for this first year is $397,800, what would its absorption costing net operating income be for this first year?

• A) $354,600
• B) $441,000
• C) $445,800
• D) $473,800

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