Arca Company reports the following for its product for its first year of operations. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 87 per unit $ 67 per unit $ 37 per unit $ 102,800 per year $7 per unit $ 57,000 per year The company sells its product for $385 per unit. Compute gross profit using absorption costing assuming the company produces 2,570 units and sells 2,170 units. Multiple Choice $334,180 $318,990 О $277,180 $345,380 О $288,380

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Arca Company reports the following for its product for its first year of operations.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
$ 87 per unit
$ 67 per unit
$ 37 per unit
$ 102,800 per year
$7 per unit
$ 57,000 per year
The company sells its product for $385 per unit. Compute gross profit using absorption costing assuming the company produces 2,570 units and sells 2,170 units.
Multiple Choice
$334,180
$318,990
О
$277,180
$345,380
О
$288,380
Transcribed Image Text:Arca Company reports the following for its product for its first year of operations. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 87 per unit $ 67 per unit $ 37 per unit $ 102,800 per year $7 per unit $ 57,000 per year The company sells its product for $385 per unit. Compute gross profit using absorption costing assuming the company produces 2,570 units and sells 2,170 units. Multiple Choice $334,180 $318,990 О $277,180 $345,380 О $288,380
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