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? Connect https//newconnect.mheducation. tion.com/flow/connect.html EXAM 3 (CH5&

ID: 2515034 • Letter: #

Question

? Connect https//newconnect.mheducation. tion.com/flow/connect.html EXAM 3 (CH5&60 24 Danahy Corporation manufactures a single product The following deta pertain to the company's operations over the last two years Variable costing net operating income, last year $52,080 le costing net operat ing income, this year $68,600 4,008 6,980 manufacturing overhead costs released from inventory under absorption costing, last year Fixed manufacturine overhead costs deferred in inventory under absorption costing, this year What t was the absorption costing net operating income last year? Mutplo Choice 52.000 50.000 48.000 58.000

Explanation / Answer

Calculate absorption costing net operating income last year :

so answer is c) $48000

Variable costing net operating income last year 52000 Less: Fixed manufacturing overhead cost released in ending inventory -4000 Absorption costing net operating income 48000
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