Kellman Corporation Kellman Corporation produces a single product that sells for $7.00 per unit.Standard capacity is 100,000 units per year; 100,000 units were produced and 80,000 units were sold during the year.Manufacturing costs and selling and administrative expenses are presented below. There were no variances from the standard variable costs.Any under- or overapplied overhead is written off directly at year-end as an adjustment to cost of goods sold.

 

Kellman Corporation had no inventory at the beginning of the year. Refer to Kellman Corporation.What is the net income under variable costing? A)$50,000 B)$80,000 C)$90,000 D)$120,000

Variable costs $1.50 per unit prodchuced 1.00 per unit procduced 0.50 per unit prochuced 0.50 per unit sold Fixed costs $0 Direct material Directlabor Mamufacturing overhe ad Selling & Administration expense $150,000 80,000