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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Hello teacher please help me Accounting question

Transcribed Image Text: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
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