Chapter 13, Problem 13.11DMP

Fasetech, Inc. has collected the following data. Units produced 510 units Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs $150 per unit $16 per unit $10 per unit $10 per unit $16,000 per year $9 per unit $10,500 per year What is the operating income using absorption costing if 500 units are sold? A. $27,500 B. $38,315 C. $26,315 D. $31,641

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