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During its first year of operation Driftwood, LLC produced a single product. The following was the cost structure for that first year: Variable costs: SG&A
During its first year of operation Driftwood, LLC produced a single product. The following was the cost structure for that first year:
Variable costs: | |
SG&A | $2 per unit |
Production | $4 per unit |
Fixed costs (total cost incurred for the year): | |
SG&A | $14,000 |
Production | $20,000 |
Assume for this question only that Driftwood, LLC produced 5,000 units and sold 4,500 units in the current year. If Driftwood uses absorption costing, it would deduct period costs of
Group of answer choices
$24,000.
$23,000.
$27,000.
$34,000.
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