Hyper Color Company manufactures widgets. The following data is related to sales and production of the widgets for last year.Selling price per unit$150Variable manufacturing costs per unit$63Variable selling and administrative expenses per unit$8Fixed manufacturing overhead (in total)$34,000Fixed selling and administrative expenses (in total)$9000Units produced during the year1700Units sold during year1000Using absorption costing, what is operating income for last year? (Round any intermediary calculations to the nearest whole dollar.) Question 40 options: $216,000 $150,000 $232,000 $50,000

We have to calculate the operating income under absorption costing. The calculation are as follows

Answered: Using absorption costing, what is…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hyper Color Company manufactures widgets. The following data is related to sales and production of the widgets for last year.

Selling price per unit	$150
Variable manufacturing costs per unit	$63
Variable selling and administrative expenses per unit	$8
Fixed manufacturing overhead (in total)	$34,000
Fixed selling and administrative expenses (in total)	$9000
Units produced during the year	1700
Units sold during year	1000