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Belle Company's product is sold for $50 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $170,000 per year. Compute the net income under absorption costing. $55,000 O $67,500 $80,500 O $122,500 O $205,000

Belle Company's product is sold for $50 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $170,000 per year. Compute the net income under absorption costing. $55,000 O $67,500 $80,500 O $122,500 O $205,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year 25,000 units Units sold this year 15,000 units Direct materials $9 per unit Direct labor $11 per unit $3 per unit $ 137,500 in total Variable overhead Fixed overhead Belle Company's product is sold for $50 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $170,000 per year. Compute the net income under absorption costing. $55,000 $67,500 $80,500 $122,500 $205,000
Transcribed Image Text:Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year 25,000 units Units sold this year 15,000 units Direct materials $9 per unit Direct labor $11 per unit $3 per unit $ 137,500 in total Variable overhead Fixed overhead Belle Company's product is sold for $50 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $170,000 per year. Compute the net income under absorption costing. $55,000 $67,500 $80,500 $122,500 $205,000
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