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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