During its first year of operations, Holt Manufacturing Company incurred the following costs to produce 200,000 units of its only product: Holt also incurred the following costs in the sale of 180,000 units of product during its first year: Assume that direct labor is a variable cost.
-If Holt's variable costing net operating income for this first year is $397,800, what would its absorption costing net operating income be for this first year?
A) $354,600
B) $441,000
C) $445,800
D) $473,800

Question

During its first year of operations, Holt Manufacturing Company incurred the following costs to produce 200,000 units of its only product:  Holt also incurred the following costs in the sale of 180,000 units of product during its first year:  Assume that direct labor is a variable cost.
-If Holt's variable costing net operating income for this first year is $397,800, what would its absorption costing net operating income be for this first year?
A) $354,600 
B) $441,000 
C) $445,800 
D) $473,800

Quizplus · Accepted Answer

The Answer of During its first year of operations, Holt Manufacturing Company incurred the following costs to produce 200,000 units of its only product:  Holt also incurred the following costs in the sale of 180,000 units of product during its first year:  Assume that direct labor is a variable cost.
-If Holt's variable costing net operating income for this first year is $397,800, what would its absorption costing net operating income be for this first year?
A) $354,600 
B) $441,000 
C) $445,800 
D) $473,800

During Its First Year of Operations, Holt Manufacturing Company Incurred