Chapter 20 Quiz - 1 2 3 The amount of income under absorption costing will be less than the amount of income under variable costing when units

Chapter 20 Quiz - 1 2 3 The amount of income under...

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  • ACCT 102
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1.The amount of income under absorption costing will be less than the amount of income under variable costing when units manufactured: 2.What term is commonly used to describe the concept whereby the cost of manufactured products is composed of direct materials cost, direct labor cost, and all factory overhead cost? 3.A business operated at 100% of capacity during its first month and incurred the following costs:Production costs (20,000 units):Direct materials$180,000Direct labor240,000Variable factory overhead280,000Fixed factory overhead100,000$800,000Operating expenses:Variable operating expenses$130,000Fixed operating expenses50,000180,000If 1,500 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet?
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