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Author Question: Jupiter Corporation incurred fixed manufacturing costs of $18,000 during 2017. Other information for ... (Read 123 times)

karlynnae

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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
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by karlynnae on Mar 6, 2021

SamMuagrove

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Reply #1 on: Mar 6, 2021
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karlynnae

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

miss_1456@hotmail.com

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Reply 3 on: Yesterday
Wow, this really help

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