The Following Information Pertains to Guillotine Corporation How Much Greater or Less Than Variable Costing Net Income

Multiple Choice

The following information pertains to Guillotine Corporation: $$\begin{array} { l r } \text { Beginning inventory } & 1,000 \text { units } \\\text { Ending inventory } & 6,000 \text { units } \\\text { Direct labor per unit } & \$ 40 \\\text { Direct materials per unit } & 20 \\\text { Variable overhead per unit } & 10 \\\text { Fixed overhead per unit } & 30 \\\text { Variable selling and admin. costs per unit } & 6 \\\text { Fixed selling and admin. costs per unit } & 14\end{array}$$ How much greater or less than variable costing net income is the absorption costing net income?

A) $150,000 less than
B) $150,000 greater than
C) $240,000 less than
D) $240,000 greater than