Montana Industries has computed the following unit costs for the year just ended:

Which of the following choices correctly depict amounts included in the per-unit cost of inventory under variable costing and absorption costing?
A) Variable, $85; absorption, $105.
B) Variable, $85; absorption, $116.
C) Variable, $103; absorption, $105.
D) Variable, $103; absorption, $116.
E) None of the answers is correct.

Question

Montana Industries has computed the following unit costs for the year just ended:

Which of the following choices correctly depict amounts included in the per-unit cost of inventory under variable costing and absorption costing?
A) Variable, $85; absorption, $105. 
B) Variable, $85; absorption, $116. 
C) Variable, $103; absorption, $105. 
D) Variable, $103; absorption, $116. 
E) None of the answers is correct.

Quizplus · Accepted Answer

The Answer of Montana Industries has computed the following unit costs for the year just ended:

Which of the following choices correctly depict amounts included in the per-unit cost of inventory under variable costing and absorption costing?
A) Variable, $85; absorption, $105. 
B) Variable, $85; absorption, $116. 
C) Variable, $103; absorption, $105. 
D) Variable, $103; absorption, $116. 
E) None of the answers is correct.

Montana Industries Has Computed the Following Unit Costs for the Year