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At the start of its fiscal year, a company anticipated producing 300,000 units throughout the year. The annual budgeted manufacturing OH was 150K for variable costs and 600K for fixed costs. In April, when there was a beginning inventory for finished goods of 5,000 units, the company showed an income of 40K using absorption costing. That same month, ending inventory for finished goods was 7,000 units. What amount would the company recognize as income for April using Variable costing? Answer is 36K – I cant get it
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