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Business, 13.10.2021 02:40 emj617

White Company manufactures a single product and has the following cost structure: Variable Costs Per Unit:
Direct Materials $3.00
Direct Labor 4.00
Variable Manufacturing Overhead 1.00
Variable Operating Expenses 2.00
Fixed Costs Per Month:
Fixed Manufacturing Overhead $100,000
Fixed Operating Expenses 60,000

Assume that beginning inventories are zero, 20,000 units are produced, and 19,000 units are sold during the month. The unit selling price is $20. The net operating income will differ between variable and absorption costing because:

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