Petra,IncHas Collected the Following Data What Is the Operating Income Using Absorption Costing? (Round Any

question 147

Multiple Choice

Petra,Inc.has collected the following data.(There are no beginning inventories.) : $$\begin{array} { | l | l | l | } \hline \text { Units produced } & 550 & \text { units } \\\hline \text { Units sold } & \$ 50 & \text { units } \\\hline \text { Sales price } & \$ 220 & \text { per unit } \\\hline \text { Direct materials } & \$ 10 & \text { per unit } \\\hline \text { Direct labor } & \$ 35 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 30 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 15,000 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 20 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 10,000 & \text { per year } \\\hline\end{array}$$ 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) $64,750
• B) $53,750
• C) $43,750
• D) $54,750

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