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Student Answer: Variable expense per unit
Number of units sold
Total fixed expenses
Selling price per unit
Question 10. Question : (TCO D) Under variable costing,
Student Answer: inventory costs will be lower than under absorption
costing.
inventory costs will be higher than under absorption costing.
net operating income will always be lower than under absorption
costing.
net operating income will always be higher than under absorption
costing.
Question 1. Question : (TCO A) The following data (in thousands of
dollars) have been taken from the accounting records of Larden
Corporation for the just-completed year.
Sales $950
Purchases of raw materials $170
Direct labor $225
Manufacturing overhead $220
Administrative expenses $180
Selling expenses $140
Raw materials inventory, beginning $90
Raw materials inventory, ending $80
Work-in-process inventory, beginning $30
Work-in-process inventory, ending $20
Finished goods inventory, beginning $100
Finished goods inventory, ending $70