Multiple Choice
The company is considering using either super-variable costing or a variable costing system that assigns $25 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?
A) Super-variable costing net operating income exceeds variable costing net operating income by $150,000.
B) Super-variable costing net operating income exceeds variable costing net operating income by $336,000.
C) Variable costing net operating income exceeds super-variable costing net operating income by $336,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $150,000.
Correct Answer:

Verified
Correct Answer:
Verified
Q39: All differences between super-variable costing and absorption
Q40: The net operating income for the year
Q41: Slezak Corporation manufactures and sells one product.
Q42: Capello Corporation manufactures and sells one product.
Q43: The net operating income for the year
Q45: The super-variable costing net operating income period
Q46: The unit product cost under super-variable costing
Q47: Assume that the company uses a variable
Q48: The net operating income for the year
Q49: The net operating income for the year