Windsor Corporation Began Business at the Start of the Current

question 10

Multiple Choice

Windsor Corporation began business at the start of the current year. The company planned to produce 25,000 units, and actual production conformed to expectations. Sales totalled 22,000 units at $30 each. Actual costs incurred were: fixed manufacturing overhead $150,000; fixed selling and administrative costs $100,000; variable manufacturing cost per unit $8; variable selling and administrative cost per unit $2. If there were no variances, Windsor's absorption-costing net income would be:

• A)$190,000.
• B)$202,000.
• C)$208,000.
• D)$220,000.
• E)$252,000.

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