8. Queens Co. produces a single product. Information about the product for the past year is as follows: Production (in units) 100,000 Sales (units) 80,000 Selling price/unit $20.00 Machine hours 50,000 Manufacturing costs: Direct materials $ 80,000 Direct labor $240,000 Variable overhead $ 40,000 Fixed overhead $200,000 Nonmanufacturing costs: Variable selling $48,000 Fixed selling $20,000 There were no beginning inventories. (Round amounts to two decimal places.)

13. Refer to the data in question 8. If Queens Co. uses absorption costing, its operating income is: a. $1,264,000b. $1,064,000 c. $1,044,000 d. $1,084,000