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

question 18

Multiple Choice

The company is considering using either super-variable costing or a variable costing system that assigns $14 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 $98,000.
• B)Variable costing net operating income exceeds super-variable costing net operating income by $98,000.
• C)Super-variable costing net operating income exceeds variable costing net operating income by $448,000.
• D)Variable costing net operating income exceeds super-variable costing net operating income by $448,000.

---

Definitions:

Public Order

The general societal condition in which public laws, norms, and standards are respected and maintained, ensuring community safety and harmony.

Writ of Habeas Corpus

A legal order that requires a person under arrest to be brought before a judge or into court, to secure the person's release unless lawful grounds are shown for their detention.

Constitutional Provision

A specific article, amendment, or clause within a constitution that outlines the structure, powers, and limits of a government's branches and the rights of its citizens.

"Take Care Clause"

A clause in the U.S. Constitution (Article II, Section 3) that requires the President to enforce all legally enacted laws, even if the president disagrees with them.