ACCOUNTING
Multiple Choice
The following information pertains to Brian Stone Corporation:
Beginning fixed manufacturing overhead in inventory $60,000
Ending fixed manufacturing overhead in inventory 45,000
Beginning variable manufacturing overhead in inventory $30,000
Ending variable manufacturing overhead in inventory 14,250
Fixed selling and administrative costs $724,000
Units produced 5,000 units
Units sold 4,800 units
What is the difference between operating incomes under absorption costing and variable costing?
a. $750
b. $7,500
c. $15,000
d. $30,750
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