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21. ABC Manufacturing Company incurred the following costs to produce 206,000 units of its only product during its first year of operations: Direct materials $158,620
21.
ABC Manufacturing Company incurred the following costs to produce 206,000 units of its only product during its first year of operations:
Direct materials | $158,620 |
Direct labor | $98,880 |
Variable manufacturing overhead | $210,120 |
Fixed manufacturing overhead | $432,600 |
ABC also incurred the following costs in the sale of 183,000 units of product during its first year:
Variable selling and administrative | $73,200 |
Fixed selling and administrative | $281,820 |
Assume that direct labor is a variable cost. If ABC's variable costing net operating income for this first year is $398,600, what would its absorption costing net operating income be for this first year?
A. $450,810
B. $446,900
C. $350,300
D. $499,110
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