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

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