Assume the following information for a company that produced 10,000 units and sold 9,000 units...
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Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 70 Direct labor $ 50 Variable manufacturing overhead $ 10 Sales commission $ 8 Fixed manufacturing overhead $ 285,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? Multiple Choice The absorption costing net operating income will be lower than the variable costing net operating income by $28,500. The absorption costing net operating income will be lower than the variable costing net operating income by $100,500. The absorption costing net operating income will be higher than the variable costing net operating income by $28,500. The absorption costing net operating income will be higher than the variable costing net operating income by $100,500.
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