Fasetech,Inc What Is the Operating Income Using Absorption Costing If 500

question 47

Multiple Choice

Fasetech,Inc.has collected the following data.(There are no beginning inventories. ) $$\begin{array} { | l | r | r|} \hline \text { Units produced } &510& \text { units } \\\hline \text { Sales price } & \$ 150 &\text { per unit } \\\hline \text { Direct materials } & \$ 16 &\text { per unit } \\\hline \text { Direct labor } & \$ 10& \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 10 &\text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 16,000& \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 9& \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 10,500 &\text { per year } \\\hline\end{array}$$ What is the operating income using absorption costing if 500 units are sold? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar. )

• A)$27,500
• B)$26,315
• C)$31,641
• D)$38,315

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