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| A single-product company prepares income statements using both absorption and variable costing methods. Manufacturing overhead cost applied per unit produced in 2012 was the same as in 2011. The 2012 variable costing statement reported a profi t whereas the 2012 absorption costing statement reported a loss. The difference in reported income could be explained by units produced in 2012 being A. Less than units sold in 2012. 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 2012. |
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