Morwenna, Inc Calculate the Operating Income for August Using Absorption Costing

question 142

Multiple Choice

Morwenna, Inc. reports the following information for August: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 900,000 \\\hline \text { Variable Cost of Goods Sold } & 120,000 \\\hline \text { Fixed Cost of Goods Sold } & 60,000 \\\hline \text { Variable Selling and Administrative Costs } & 150,000 \\\hline \text { Fixed Selling and Administrative Costs } & 50,000 \\\hline\end{array}$$ Calculate the operating income for August using absorption costing.

• A) $520,000
• B) $270,000
• C) $1,100,000
• D) $380,000

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Definitions:

Gross Domestic Product

The aggregate value of all products and services finished within a nation's boundaries over a distinct timeframe, measured in monetary or market terms.

Gross National Product

The total value of all goods and services produced by a country's residents in a specific time period, including international activities.

Output

The amount of goods or services produced by a company, country, or economic system.

Human Development Index

An index measuring average achievements in a country in three basic dimensions of human development: long and healthy life, knowledge, and a decent standard of living.