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

question 215

Multiple Choice

Fasetech,Inc.has collected the following data.(There are no beginning inventories.) $$\begin{array} { | l | r | } \hline \text { Units produced } & \text { 540 units } \\\hline \text { Sales price } & \$ 140 \text { per unit } \\\hline \text { Direct materials } & \$ 18 \text { per unit } \\\hline \text { Direct labor } & \$ 15 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 9 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 16,600 \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 9 \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 10,900 \text { per year } \\\hline\end{array}$$ 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) $22,600
• B) $18,230
• C) $25,420
• D) $34,730

---

Definitions:

Adolescent Growth Spurt

A rapid increase in height and weight during puberty, resulting from accelerated bone growth and hormonal changes.

Males

Referring to the biological sex that produces sperm in sexual reproduction, characterized by XY chromosomes in mammals.

Hand Grip

A measure of hand and forearm strength, assessed using a device that an individual squeezes with maximum effort.

Arm Pull

A reflex in infants when an arm is pulled and the infant's hand automatically grasps the object or person as a response.