University Of Rochester Operations And Supply Chain Management Assignment Help - Harris Company prod...continues

Question - 4. Use the following information to answer this question.
Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold
13,000 units. Production costs for the year were as follows:
Production Cost Data
Direct materials $153,000
Direct labor $110,500
Variable manufacturing overhead $204,000
Fixed manufacturing overhead $255,000
Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and
fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume
that direct labor is a variable cost.
Under variable costing, the company's net operating income for the year would be _______ than
under absorption costing.
A. $60,000 higher

B ...Read More . $108,000 higher

C. $108,000 lower

D. $60,000 lower


The answer is not A ...Read Less

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