The Company Is Considering Using Either Super-Variable Costing or a Variable

question 27

Multiple Choice

The company is considering using either super-variable costing or a variable costing system that assigns $22 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?

• A)Variable costing net operating income exceeds super-variable costing net operating income by $427,000.
• B)Variable costing net operating income exceeds super-variable costing net operating income by $154,000.
• C)Super-variable costing net operating income exceeds variable costing net operating income by $154,000.
• D)Super-variable costing net operating income exceeds variable costing net operating income by $427,000.

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Definitions:

ADEA

The Age Discrimination in Employment Act of 1967, a U.S. federal law that aims to protect employees 40 years of age and older from workplace discrimination.

Mixed-Motives

In legal and organizational contexts, refers to decisions or actions influenced by both legitimate and illegitimate factors.

Gender Discrimination

Unfair treatment or consideration of an individual based on their gender, violating principles of equality and non-discrimination.

Lesbian

A woman who is emotionally, romantically, or sexually attracted to other women.