Question
17. The Browning Company manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing $6. Selling and administrative costs are
17. The Browning Company manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing $6. Selling and administrative costs are $2 per unit sold. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900 000 for the year. Information about Browning's production activity for the year is:
Sales 125,000 units
Units produced 150,000 units
Units sold 5,000 units
What is the profit under variable costing?
A. $1 250 000
B. $350 000
C. $500 000
D. Insufficient information to determine
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