Helton Company has the following information for the current year

ACCOUNTING

Multiple Choice

Helton Company has the following information for the current year.



Beginning fixed manufacturing overhead in inventory $95,000

Fixed manufacturing overhead in production 375,000

Ending fixed manufacturing overhead in inventory 25,000



Beginning variable manufacturing overhead in inventory $10,000

Variable manufacturing overhead in production 50,000

Ending variable manufacturing overhead in inventory 15,000



What is the difference between operating incomes under absorption costing and variable costing?

a. $70,000

b. $50,000

c. $40,000

d. $5,000

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