Author Question: Jupiter Corporation incurred fixed manufacturing costs of $18,000 during 2017. Other information for ... (Read 89 times)

karlynnae · **on:** Mar 6, 2021

Jupiter Corporation incurred fixed manufacturing costs of $18,000 during 2017. Other information for 2017 includes:

The budgeted denominator level is 2,400 units.
Units produced total 2,700 units.
Units sold total 1,600 units.
Variable cost per unit is $4
Beginning inventory is zero.

The fixed manufacturing cost rate is based on the budgeted denominator level.
The operating income using variable costing will be ________ as compared to the operating income under absorption costing. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)
◦ lower by $8,250.00
◦ lower by $2,250.00
◦ higher by $8,250.00
◦ higher by $2,250.00

SamMuagrove · **Reply #1 on:** Mar 6, 2021

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