“46. During 19×4, Roberts Company’s income under absorption costing was $2,000 lower than its income under variable costing. The company sold 8,000 units during the year, and its variable costs were $8 per unit, of which $2 was variable selling expense. If production cost was $10 per unit under absorption costing, then how many units did the company produce during the year? a. 7,500 units. b. 7,000 units. c. 9,000 units. d. 8,500 units.”,”1Production cost per unit under absorption = $10- Variable production cost per unit (8-2) = 6Fix MOH per unit 4Then the difference in income of $2000 is for 500 units (2000 / 4) Absorption income < variable income when units sold is > units produced.Units produced = 8,000 – 500 = 7

“46. During 19×4, Roberts Company’s income under absorption costing was $2,000 lower than its income under variable costing. The company sold 8,000 units during the year, and its variable costs were $8 per unit, of which $2 was variable selling expense. If production cost was $10 per unit under absorption costing, then how many units did the company produce during the year? a. 7,500 units. b. 7,000 units. c. 9,000 units. d. 8,500 units.”,”1Production cost per unit under absorption = $10- Variable production cost per unit (8-2) = 6Fix MOH per unit 4Then the difference in income of $2000 is for 500 units (2000 / 4) Absorption income < variable income when units sold is > units produced.Units produced = 8,000 – 500 = 7

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