AlbanyAlbany,

Inc., planned and actually manufactured

170 comma 000170,000

units of its single product in

20172017,

its first year of operation. Variable manufacturing cost was

$ 21$21

per unit produced. Variable operating (nonmanufacturing) cost was

$ 9$9

per unit sold. Planned and actual fixed manufacturing costs were

$ 1 comma 020 comma 000$1,020,000.

Planned and actual fixed operating (nonmanufacturing) costs totaled

$ 440 comma 000$440,000.

AlbanyAlbany

sold

100 comma 000100,000

units of product at

$ 45$45

per unit.Read the requirements

LOADING...

.

Requirement 1.

AlbanyAlbany's

20172017

operating income using absorption costing is (a)

$ 460 comma 000$460,000,

(b)

$ 40 comma 000$40,000,

(c)

$ 480 comma 000$480,000,

left parenthesis d right parenthesis $ 900 comma 000 comma(d) $900,000,

or (e) none of these. Show supporting calculations.

Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.)

1.	AlbanyAlbany's 20172017 operating income using absorption costing is (a) $ 460 comma 000$460,000, (b) $ 40 comma 000$40,000, (c) $ 480 comma 000$480,000, (d) $ 900 comma 000$900,000, or (e) none of these. Show supporting calculations.
2.	AlbanyAlbany's 20172017 operating income using variable costing is (a) $ 1 comma 060 comma 000$1,060,000, (b) $ 460 comma 000$460,000, (c) $ 40 comma 000$40,000, (d) $ 480 comma 000$480,000, or (e) none of these. Show supporting calculations.