Oakwood Corporation Oakwood Corporation Produces a Single Product

Multiple Choice

Oakwood Corporation Oakwood Corporation produces a single product.The following cost structure applied to its first year of operations:
Refer to Oakwood Corporation.Assume for this question only that during the current year Oakwood Corporation manufactured 5,000 units and sold 3,800.There was no beginning or ending work-in-process inventory.How much larger or smaller would Oakwood Corporation's income be if it uses absorption rather than variable costing?

A) The absorption costing income would be $6,000 larger.
B) The absorption costing income would be $6,000 smaller.
C) The absorption costing income would be $4,800 larger.
D) The absorption costing income would be $4,000 smaller.