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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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