47. A single-product company prepares income statements using both absorption and variable costing methods. Manufacturing overhead cost applied per unit produced in 1995 was the same as in 1994. The 1995 variable costing statement reported a profit whereas the 1995 absorption costing statement reported a loss. The difference in reported income could be explained by units produced in 1995 being a. Less than units sold in 1995. b. Less than the activity level used for allocating overhead to the product. c. In excess of the activity level used for allocating overhead to the product. d. In excess of units sold in 1995.

47. A single-product company prepares income statements using both absorption and variable costing methods. Manufacturing overhead cost applied per unit produced in 1995 was the same as in 1994. The 1995 variable costing statement reported a profit whereas the 1995 absorption costing statement reported a loss. The difference in reported income could be explained by units produced in 1995 being a. Less than units sold in 1995. b. Less than the activity level used for allocating overhead to the product. c. In excess of the activity level used for allocating overhead to the product. d. In excess of units sold in 1995.

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