Oxygen,Inc Assume That the Production Costs and Sales Prices Were the |

question 198

Multiple Choice

Oxygen,Inc.reports the following information: $$\begin{array} { | l | r | } \hline \text { Units produced } & 2,500 \text { units } \\\hline \text { Units sold } & 2,000 \text { units } \\\hline \text { Sales price } & \$ 200 \text { per unit } \\\hline \text { Direct materials } & \$ 40 \text { per unit } \\\hline \text { Direct labor } & \$ 25 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 20 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 90,000 \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 15 \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 75,000 \text { per year } \\\hline\end{array}$$ Assume that the production costs and sales prices were the same in the previous year.Assume no beginning inventories.
Requirements:

• A)Calculate unit product cost using absorption costing and variable costing.
• B)Calculate the operating income using absorption costing and variable costing.

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Definitions:

Information Silos

Situations in organizations where information is isolated in separate departments or units, hindering integration and efficiency.

Network Transmissions

The process of transferring data between nodes over a computer network, enabling communication and data sharing among different devices.

Processing Speeds

The rate at which a computer or processor completes tasks, often measured in hertz (Hz), indicating the number of cycles it can perform per second.

Multidimensional

Multidimensional, often used in data analysis, refers to the inclusion of multiple aspects or dimensions when considering data, allowing for more complex and insightful analysis.