Vision Tester, Inc Given This Information, Which of the Following Is True?
A)Net

Multiple Choice

Vision Tester, Inc., a manufacturer of optical glass, began operations on February 1 of the current year.During this time, the company produced 900,000 units and sold 800,000 units at a sales price of $12 per unit.Cost information for this year is shown in the following table: $\begin{array}{l}\text { Production costs }\\\begin{array}{ll}\text { Direct materials } & \$ 80 \text { per unit } \\\text { Direct labor } & \$ 70 \text { per unit } \\\text { Variable overhead } & \$ 500,000 \text { in total } \\\text { Fixed overhead } & \$ 450,000 \text { in total } \\\text { Jon-production costs } & \\\text { Variable selling and administrative } & \$ 30,000 \text { in total } \\\text { Fixed selling and administrative } & \$ 490,000 \text { in total }\end{array}\end{array}$ Given this information, which of the following is true?

A) Net income under variable costing will exceed net income under absorption costing by $50,000.
B) Net income under absorption costing will exceed net income under variable costing by $50,000.
C) Net income will be the same under both absorption and variable costing.
D) Net income under variable costing will exceed net income under absorption costing by $60,000.
E) Net income under absorption costing will exceed net income under variable costing by $60,000.