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The following information pertains to ABC Corporation:Beginning fixed manufacturing overhead in ...

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The following information pertains to ABC Corporation:Beginning fixed manufacturing overhead in ...

The following information pertains to ABC Corporation:

Beginning fixed manufacturing overhead in inventory   $40,000
Ending fixed manufacturing overhead in inventory   $30,000
Beginning variable manufacturing overhead in inventory   $20,000
Ending variable manufacturing overhead in inventory   $9,500
Selling price per unit   $41
Standard fixed manufacturing costs per unit   $20
Variable selling and administrative cost per unit   $4
Fixed selling and administrative costs   $16,000
Units produced   10,000
Units sold   9,600

What is the difference between absorption costing operating income and variable costing operating income?
A) $11,500
B) $5,000
C) $10,000
D) $10,500
E) $21,500

Textbook

Cost Accounting: A Managerial Emphasis, Canadian Edition

Edition: 7^th

Authors: Horngren, Datar, Rajan, Beaubien

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