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

question 115

Multiple Choice

Medbam,Inc.has collected the following data.(There are no beginning inventories.) : $$\begin{array} { | l | r | } \hline \text { Units produced } & 500 \text { units } \\\hline \text { Units sold } & 500 \text { units } \\\hline \text { Sales price } & \$ 170 \text { per unit } \\\hline \text { Direct materials } & \$ 20 \text { per unit } \\\hline \text { Direct labor } & \$ 25 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 40 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 14,000 \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 15 \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 15,000 \text { per year } \\\hline\end{array}$$ 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) $28,500
• B) $21,000
• C) $6,000
• D) $13,500

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Definitions:

Biological Explanations

Theories that attribute psychological phenomena and behaviors to biological factors such as genetic, neurological, or physiological processes.

Brain Structural Defects

Abnormalities in the physical structure of the brain, which can lead to various neurological or developmental disorders.

Mood Disorder

A psychological disorder characterized by the elevation, lowering, or disturbance of a person's mood, such as depression or bipolar disorder.

Psychodynamic Model

A theoretical approach in psychology that emphasizes unconscious processes and childhood experiences in shaping behavior and personality.