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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Definitions:

Mature Vessel Elements

Components of the xylem in plants that form part of a continuous tube through which water can move.

Sieve Tubes

Specialized structures in the phloem of vascular plants that facilitate the transport of sugars and other nutrients.

Companion Cells

Specialized cells in the phloem of plants that manage the functioning and maintenance of the nutrient-conducting sieve-tube elements.

Cognitive Development

The process through which individuals learn and develop their ability to think, understand, and interact with the world.