Houston, Inc., planned and actually manufactured 240,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $24 per unit produced. Variable operating (nonmanufacturing) cost was $7 per unit sold. Planned and actual fixed manufacturing costs were $720,000. Planned and actual fixed operating (nonmanufacturing) costs totaled . $430,000. Houston sold 150,000 units of products at $46 per unit.

Houston's 2017 Operating Income using absorption costing