Multiple Choice
Last year, Harris Company manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:
Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labour is a variable cost.
-Under variable costing,what was the company's operating income for the year,as compared with under absorption costing?
A) $60,000 higher than under absorption costing.
B) $108,000 higher than under absorption costing.
C) $108,000 lower than under absorption costing.
D) $60,000 lower than under absorption costing.
Correct Answer:

Verified
Correct Answer:
Verified
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