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Quiz5Ch6Solution MGA 202

# Variable costing multiple choice questions 2 points

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Unformatted text preview: ariable Costing Multiple choice questions (2 points each): B A Question 2: X = \$90,000 - \$84,000 = \$6,000. Since absorption costing net operating income was greater than its variable costing net operating income by \$6,000, it must have deferred \$6,000 of fixed manufacturing overhead costs in inventory under absorption costing. \$6,000 = \$12 per unit × Increase in units in inventory Increase in units in inventory = \$6,000 ÷ \$12 per unit = 500 units Therefore, since there were no beginning inventories, ending inventory were 500 units. Question 3: What is the absorption costing unit product cost for the month? Direct materials ........................................................................................................................... 33 Direct labor...............................................................................................
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