Yuvil Corporation Produces a Single Product

question 230

Multiple Choice

Yuvil Corporation produces a single product. At the end of the company's first year of operations, 1,000 units of inventory remained on hand. Its variable manufacturing overhead cost is $45 per unit and its fixed manufacturing overhead cost is $10 per unit. Yuvil's absorption costing net operating income would be higher than its variable costing net operating income by:

• A)$0
• B)$10,000
• C)$35,000
• D)$45,000

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Definitions:

Trend Analysis

A quantitative approach to forecasting labour demand based on an organizational index such as sales.

Replacement Charts

Listings of current jobholders and people who are potential replacements if an opening occurs

Attrition

The gradual reduction in workforce through normal means, such as retirement or voluntary resignation, without actively replacing those positions.

Contract Workers

Individuals hired to perform specific tasks or projects for a limited period under a contract, rather than being permanent employees.