Wyoming Company provided the following information regarding its only product--skateboards. $\begin{array}{lr}
\text { Direct materials used } & \$ 270,000 \
\text { Direct labor } & 180,000 \
\text { Fixed overhead } & 130,000 \
\text { Fixed selling and administrative costs } & 150,000 \
\text { Variable overhead } & 120,000 \
\text { Variable selling and administrative } & 60,000 \
\text { Selling unit price } & 99\
\text { Units produced and sold }&30,000
\end{array}$ _____ is the difference in total product cost between the absorption approach and the contribution approach.
A)$130,000
B)$150,000
C)$120,000
D)None of these answers is correct

Question

Quizplus · Accepted Answer

The difference in total product cost between the absorption approach and the contribution approach is the fixed overhead, which is $130,000.

Wyoming Company Provided the Following Information Regarding Its Only Product--Skateboards