Question
20) The following data pertain to last year's operations at Tredder Corporation, a company that produces a single product: Units in beginning inventory 0 Units
20)
The following data pertain to last year's operations at Tredder Corporation, a company that produces a single product:
Units in beginning inventory | 0 |
Units produced | 20,000 |
Units sold | 19,000 |
|
|
Selling price per unit | $100.00 |
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|
Variable costs per unit: |
|
Direct materials | $12.00 |
Direct labor | $25.00 |
Variable manufacturing overhead | $3.00 |
Variable selling and administrative | $2.00 |
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|
Fixed expenses per year: |
|
Fixed manufacturing overhead | $500,000 |
Fixed selling and administrative | $600,000 |
What was the absorption costing net operating income last year?
A) $12,000
B) $57,000
C) $27,000
D) $2,000
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