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umka2103 [35]
3 years ago
15

A manufacturer reports the following information below for its first three years in operation.

Business
1 answer:
Usimov [2.4K]3 years ago
4 0

Answer:

e. $111,000

Explanation:

Absorption costing income for year 3 = Income under variable costing - {Beginning inventory (units) * Fixed manufacturing overhead per unit} + {Ending inventory (units) * Fixed manufacturing overhead per unit}

Absorption costing income for year 3  = 115,000 - (500*8) + (0*8)

= 115,000 - 4,000 + 0

= $111,000

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