Chapter 9, Problem 9.19MCQ

The following information relates to Drexler Inc.’s Year 3 financials:

Direct labor	$420,000
Direct materials	210,000
Variable overhead	205,000
Fixed overhead	355,000
Variable SG&A expenses	150,000
Fixed SG&A expenses	195,000

Year 3 period costs for Drexler, under both the absorption and variable cost methods, will be

Absorption Cost Method	Variable Cost Method
a. $345,000	$700,000
b. $345,000	$905,000
c. $550,000	$700,000
d. $550,000	$905,000