Zahra's Decoratives produces and sells a decorative pillow for $100 per unit. In the first month of operation, 1,800 units were produced and 1,750 units were sold. Budgeted production was 2,000 units. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs $22 .10 per unit Variable marketing costs $ 3 .90 per unit Fixed manufacturing costs $13 .00 per unit Administrative expenses, all fixed $19 .50 per unitEnding inventories: Direct materials -0- WIP -0- Finished goods 250 units What is the operating income using absorption costing? Group of answer choices $65,125 $60,125 $65,000 $65,150

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Zahra's Decoratives produces and sells a decorative pillow for $100 per unit. In the first month of operation, 1,800 units were produced and 1,750 units were sold. Budgeted production was 2,000 units. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:

Variable manufacturing costs $22 .10 per unit
Variable marketing costs $ 3 .90 per unit
Fixed manufacturing costs $13 .00 per unit
Administrative expenses, all fixed $19 .50 per unit
Ending inventories:
Direct materials -0-
WIP -0-
Finished goods 250 units


What is the operating income using absorption costing?
Group of answer choices
$65,125
$60,125
$65,000
$65,150
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