Question
Bowman Manufacturing manufactures a single product. Cost and sales information for the company and its product are below: Sales price per unit $47.00 Variable manufacturing
Bowman Manufacturing manufactures a single product. Cost and sales information for the company and its product are below:
| Sales price per unit | $47.00 |
| Variable manufacturing costs per unit manufactured (DM, DL, Variable OH) | $26.00 |
| Variable operating expesnes per unit sold | $1.00 |
| Fixed manufacturing overhead | $170,000 |
| Fixed operating expenses | $52,000 |
| Units manufactured | 17,000 |
| Units sold | 12,500 |
What is the operating income for Bowman's single product, using absorption costing?
A.
$32,000
B.
$28,000
C.
$81,000
D.
$73,000
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, George Foster
12th edition
978-0131495388
