Last year, Clayton Company's variable production costs totaled £8,000 and its fixed manufacturing overhead costs totaled £4,800. The company produced 4,000 units during the year and sold 3,600 units. Assuming no units in the beginning stock
A)under variable costing, the units in ending stock will be costed at £3.20 each.
B)the net operating income under absorption costing for the year will be £480 lower than net operating income under variable costing.
C)the ending stock under variable costing will be £480 lower than the ending stock under absorption costing.
D)the net operating income under absorption costing for the year will be £800 lower than net operating income under variable costing.

Question

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The Answer of Last year, Clayton Company's variable production costs totaled £8,000 and its fixed manufacturing overhead costs totaled £4,800. The company produced 4,000 units during the year and sold 3,600 units. Assuming no units in the beginning stock
A)under variable costing, the units in ending stock will be costed at £3.20 each.
B)the net operating income under absorption costing for the year will be £480 lower than net operating income under variable costing.
C)the ending stock under variable costing will be £480 lower than the ending stock under absorption costing.
D)the net operating income under absorption costing for the year will be £800 lower than net operating income under variable costing.

Last Year, Clayton Company's Variable Production Costs Totaled £8,000 and Its