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kramer
3 years ago
11

Rede Inc. manufactures a single product. Variable costing net operating income was $63,800 last year and its inventory decreased

by 300 units. Fixed manufacturing overhead cost was $4 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year
Business
1 answer:
irina1246 [14]3 years ago
4 0

Answer:

$62,600

Explanation:

Net operating income under variable costing = $63,800

Fixed manufacturing overhead cost deferred in inventory = (300 units multiplied by $4) =$1,200

the absorption costing net operating income last year= $63,800 - $1,200 = $62,600

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