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

question 36

Multiple Choice

The company is considering using either super-variable costing or a variable costing system that assigns $28 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)Super-variable costing net operating income exceeds variable costing net operating income by $168,000.
• B)Super-variable costing net operating income exceeds variable costing net operating income by $420,000.
• C)Variable costing net operating income exceeds super-variable costing net operating income by $420,000.
• D)Variable costing net operating income exceeds super-variable costing net operating income by $168,000.

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Definitions:

Hominins

Members of the human lineage, including modern humans, Homo sapiens, and our closest ancestors and relatives, after diverging from the lineage of chimpanzees.

Corrective Lenses

Optical appliances designed to correct or enhance vision, including glasses and contact lenses.

Human Evolution

The lengthy process of change by which people originated from apelike ancestors, involving physiological, anatomical, and behavioral adaptations.

Selection Pressure

An environmental or social factor that influences the survival and reproduction of organisms, thereby driving evolution.