Front Company Had Net Income of $72,500 Based on Variable

question 32

Multiple Choice

Front Company had net income of $72,500 based on variable costing.Beginning and ending inventories were 800 units and 1,200 units,respectively.Assume the fixed overhead per unit was $7.90 for both the beginning and ending inventory.What is net income under absorption costing?

• A)$69,340
• B)$75,660
• C)$88,300
• D)$56,700
• E)$72,900

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Definitions:

Imferon

A brand name for a medication composed of iron dextran, used to treat iron deficiency anemia.

Given

A pre-established or assumed condition, fact, or premise in discussions, analyses, or mathematical problems.

Imferon

A brand name for iron dextran, which is used to treat iron deficiencies and iron deficiency anemia by replenishing body iron stores.

Z-track

A technique used in intramuscular injection to prevent medication leakage and minimize tissue irritation by displacing skin and tissue layers.