Futon Delight Experienced the Following Costs in 2017 (Assume the Same

question 78

Multiple Choice

Futon Delight experienced the following costs in 2017 (Assume the same unit costs in all years) : $\begin{array}{ll}\text { Direct materials } & \$ 2.00 \text { per unit } \\\text { Direct labor } & \$ 1.00 \text { per unit }\\\text { Manufacturing Overhead Costs: }\\\text { Variable } &\$ 1.50 \text { per unit }\\\text { Fixed }&\$45,000\end{array}$ There were 600 units in beginning inventory.During the year, the company manufactured 18,000 units and sold 17,600 units.If net income for the year was $54,000 using full costing, how much will net income be if the company uses variable costing?

• A)$53,000
• B)$50,000
• C)$55,000
• D)More information is needed to determine the answer.

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