The following information pertains to Brian Stone Corporation:

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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