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Jean Peck's Furniture manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $400 after negotiations. In the month of January, manufactures 3,100 tables and sells 2,300 tables. Actual fixed costs are the same as the amount of foxed costs budgeted for the month. Budgeted production is equal to actual production, and there is no production-volume variance. The following information is provided for the month of January Variable manufacturing costs $150 per unit Fixed manufacturing costs $105,000 per month Fixed Administrative expenses $27,000 per month At the end of the month Jean Peck's Furniture has an ending inventory of finished goods of 800 units. The company also incurs a sales commission of $11 per unit What is the operating income when using absorption costing? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar) OA $497,099 OB. $470,099 OC. $444,799

Jean Peck's Furniture manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $400 after negotiations. In the month of January, manufactures 3,100 tables and sells 2,300 tables. Actual fixed costs are the same as the amount of foxed costs budgeted for the month. Budgeted production is equal to actual production, and there is no production-volume variance. The following information is provided for the month of January Variable manufacturing costs $150 per unit Fixed manufacturing costs $105,000 per month Fixed Administrative expenses $27,000 per month At the end of the month Jean Peck's Furniture has an ending inventory of finished goods of 800 units. The company also incurs a sales commission of $11 per unit What is the operating income when using absorption costing? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar) OA $497,099 OB. $470,099 OC. $444,799

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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Jean Peck's Furniture manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $400 after negotiations. In the month of January, it manufactures 3,100 tables and sells 2,300 tables. Actual fixed costs are the same as the amount of fixed costs budgeted for the month. Budgeted production is equal to actual production, and there is no production-volume variance. The following information is provided for the month of January Variable manufacturing costs $150 per unit Fixed manufacturing costs $105,000 per month Fixed Administrative expenses $27,000 per month At the end of the month Jean Peck's Furniture has an ending inventory of finished goods of 800 units. The company also incurs a sales commission of $11 per unit. What is the operating income when using absorption costing? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar) OA. $497,099 OB. $470,099 OC. $444,799 OD. $471,799
Transcribed Image Text:Jean Peck's Furniture manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $400 after negotiations. In the month of January, it manufactures 3,100 tables and sells 2,300 tables. Actual fixed costs are the same as the amount of fixed costs budgeted for the month. Budgeted production is equal to actual production, and there is no production-volume variance. The following information is provided for the month of January Variable manufacturing costs $150 per unit Fixed manufacturing costs $105,000 per month Fixed Administrative expenses $27,000 per month At the end of the month Jean Peck's Furniture has an ending inventory of finished goods of 800 units. The company also incurs a sales commission of $11 per unit. What is the operating income when using absorption costing? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar) OA. $497,099 OB. $470,099 OC. $444,799 OD. $471,799
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