Answer the Following Questions Using the Information Below

question 178

Multiple Choice

Answer the following questions using the information below:
Barry's Hobbies produces and sells a luxury animal pillow for $80.00 per unit. In the first month of operation, 3,000 units were produced and 2,250 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:

-What is operating income when using absorption costing?

• A)$8,000
• B)$33,000
• C)($23,500)
• D)$37,500

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Definitions:

Dressmaking Company

A business that specializes in creating clothing according to specific designs and measurements, often providing custom tailoring services.

Manufacturing Business

An enterprise engaged in the industrial production of goods from raw materials through the use of labor, machinery, and equipment.

Men's Clothing Store

A retail establishment specializing in clothing for men, offering a variety of apparel and accessories.

Retail Business

A commercial strategy where products are sold directly to end-users, usually in small amounts.