What Was the Absorption Costing Net Operating Income Last Year

question 178

Multiple Choice

What was the absorption costing net operating income last year?

• A)$53,600
• B)$50,000
• C)$57,200
• D)$50,300

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Definitions:

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, based on standard prices.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on the hours worked.

Labor Rate Variance

A specific type of variance that measures the difference between the actual hourly wage paid to workers and the standard rate expected.

January

The first month of the year in the Gregorian calendar.