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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This document was uploaded on 03/14/2014 for the course MGA 202 at SUNY Buffalo.

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