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Assume That the Company Uses an Absorption Costing System That

Question 24

Multiple Choice

Assume that the company uses an absorption costing system that assigns $19 of direct labor cost and $55 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:


A) $1,321,000
B) $1,225,000
C) $1,395,000
D) $1,340,000

Correct Answer:

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