Vanstee Corporation manufactures a variety of products. Variable costing net operating income last year was $60,000 and this year was $67,000. Last year, $37,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing. This year, $8,000 in fixed manufacturing overhead costs were released from inventory under absorption costing.
-What was the absorption costing net operating income this year?
A)$38,000
B)$96,000
C)$75,000
D)$59,000

Question

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The Answer of Vanstee Corporation manufactures a variety of products. Variable costing net operating income last year was $60,000 and this year was $67,000. Last year, $37,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing. This year, $8,000 in fixed manufacturing overhead costs were released from inventory under absorption costing.
-What was the absorption costing net operating income this year?
A)$38,000
B)$96,000
C)$75,000
D)$59,000

Vanstee Corporation Manufactures a Variety of Products