Parker Corp. planned and manufactured 150,000 units of its product in 2024, its first operating year. The costs were: ⚫ Variable manufacturing costs: $25 per unit ⚫ Fixed manufacturing costs: $450,000 ⚫ Marketing and administrative costs: $300,000 Parker sold 90,000 units at $35 per unit. What is Parker's 2024 operating income using absorption costing? a. $375,000 b. $450,000 c. $525,000 d. $330,000

Parker Corp. planned and manufactured 150,000 units of its product in 2024, its first operating year. The costs were: ⚫ Variable manufacturing costs: $25 per unit ⚫ Fixed manufacturing costs: $450,000 ⚫ Marketing and administrative costs: $300,000 Parker sold 90,000 units at $35 per unit. What is Parker's 2024 operating income using absorption costing? a. $375,000 b. $450,000 c. $525,000 d. $330,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 16MCQ: Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000...

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The effect on income would be a
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