Vanstee Corporation Manufactures a Variety of Products

Multiple Choice

Vanstee Corporation manufactures a variety of products. Variable costing net operating income last year was $60,000 and this year was $67,000. Last year, $37,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing. This year, $8,000 in fixed manufacturing overhead costs were released from inventory under absorption costing.
-What was the absorption costing net operating income last year?

A) $60,000
B) $23,000
C) $97,000
D) $89,000