Dessa, Inc. reports the following information for the year ended December 31: ...
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Accounting
Dessa, Inc. reports the following information for the year ended December 31:
Beginning Finished Goods Inventory
50
units
Units produced
450
units
Units sold
500
units
Sales price
$140
per unit
Direct materials
$25
per unit
Direct labor
$10
per unit
Variable manufacturing overhead
$16
per unit
Fixed manufacturing overhead
$15,800
per year
Variable selling and administrative costs
$8
per unit
Fixed selling and administrative costs
$14,000
per year
The beginning Finished Goods Inventory costs were $3,300 under absorption costing and $2,550 under variable costing. What is the operating income using variable costing?
A.$3,700
B.$40,200
C.$40,500
D.$10,700
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