Helmers Corporation Manufactures a Single Product

Multiple Choice

Helmers Corporation manufactures a single product. Variable costing net operating income last year was $86,000 and this year was $103,000. Last year, $32,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $12,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.What was the absorption costing net operating income last year?

A) $106,000
B) $86,000
C) $54,000
D) $118,000