Last Year, Fabre Company Produced 20,000 Units and Sold 18,000

question 18

Multiple Choice

Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for last year were as follows:
Fixed factory overhead is applied based on expected production. Last year, Fabre expected to produce 20,000 units.
-Refer to Figure 8-1. What is operating income for last year under absorption costing?

• A) $41,000
• B) $67,520
• C) $85,900
• D) $111,300
• E) $45,000

---

Definitions:

EEG Machine

A device used to record electrical activity of the brain by placing electrodes on the scalp, commonly used in the diagnosis of neurological conditions.

Endocrine Glands

Glands in the body that release hormones directly into the bloodstream, regulating various bodily functions.

Hormones

Chemical substances produced by glands in the body that regulate the activity of cells or organs, affecting physical functions and behavior.

Bloodstream

The flowing blood within the circulatory system of a body, delivering nutrients and oxygen to cells and removing waste products.