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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Definitions:

Adrenal Glands

Small, triangular glands located on top of each kidney that produce hormones responsible for regulating metabolism, immune system, blood pressure, and stress response.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, also playing a key role in mood regulation.

Corticosteroids

A class of steroid hormones that are produced in the adrenal cortex and are used medicinally to reduce inflammation and suppress the immune system.

Cytokines

Small proteins that are crucial in controlling the growth and activity of other immune system cells and blood cells.