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Arca Company reports the following for its product for its first year of operations. Direct materials $ 87 per unit Direct labor $ 67 per
Arca Company reports the following for its product for its first year of operations.
Direct materials | $ 87 | per unit |
---|---|---|
Direct labor | $ 67 | per unit |
Variable overhead | $ 37 | per unit |
Fixed overhead | $ 104,160 | per year |
Variable selling and administrative expenses | $ 7 | per unit |
Fixed selling and administrative expenses | $ 57,000 | per year |
The company sells its product for $385 per unit. Compute gross profit using absorption costing assuming the company produces and sells 2,170 units.
Multiple Choice
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$835,450
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$334,180
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$494,760
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$316,820
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$221,340
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