During the last year,Moore Company's total variable production costs were $10,000,and its total fixed manufacturing overhead costs were $6,800.The company produced 5,000 units during the year and sold 4,600 units.There were no units in the beginning inventory.Which of the following statements is true?
A) The operating income under absorption costing for the year will be $800 higher than operating income under variable costing.
B) The operating income under absorption costing for the year will be $544 higher than operating income under variable costing.
C) The operating income under absorption costing for the year will be $544 lower than operating income under variable costing.
D) The operating income under absorption costing for the year will be $800 lower than operating income under variable costing.

Question

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The Answer of During the last year,Moore Company's total variable production costs were $10,000,and its total fixed manufacturing overhead costs were $6,800.The company produced 5,000 units during the year and sold 4,600 units.There were no units in the beginning inventory.Which of the following statements is true?
A) The operating income under absorption costing for the year will be $800 higher than operating income under variable costing.
B) The operating income under absorption costing for the year will be $544 higher than operating income under variable costing.
C) The operating income under absorption costing for the year will be $544 lower than operating income under variable costing.
D) The operating income under absorption costing for the year will be $800 lower than operating income under variable costing.

During the Last Year,Moore Company's Total Variable Production Costs Were