Medbam,Inc What Is the Operating Income Using Absorption Costing? (Round Any

question 60

Multiple Choice

Medbam,Inc.has collected the following data.(There are no beginning inventories. ) : $$\begin{array} { | l | r | r|} \hline \text { Units produced } & 560 &\text { units } \\\hline \text { Units sold } & 560& \text { units } \\\hline \text { Sales price } & \$ 180& \text { per unit } \\\hline \text { Direct materials } & \$ 10 &\text { per unit } \\\hline \text { Direct labor } & \$ 35 &\text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 20 &\text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 20,000 &\text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 15 &\text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 20,000 &\text { per year } \\\hline\end{array}$$ What is the operating income using absorption costing? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar. )

• A)$44,402
• B)$36,002
• C)$16,002
• D)$24,402

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