The company produces a single product.Last year, the company's variable production costs totaled $8,000and its fixed manufacturing overhead costs totaled $4,800. Thecompany produced 4,000 units during the year and sold 3,600 units.Assuming no units in the beginning inventory:
A. | under variable costing, the units in ending inventory will becosted at $3.20 each. |
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B. | the net operating income under absorption costing for the yearwill be $480 lower than net operating income under variablecosting. |
C. | the ending inventory under variable costing will be $480 lowerthan the ending inventory under absorption costing. |
D. | the net operating income under absorption costing for the yearwill be $800 lower than net operating income under variablecosting. |
