Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating(nonmanufacturing) cost was $13 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating(nonmanufacturing) costs totaled $420,000. Miami sold 170,000 units of product at $41 per unit.

Requirement 1. Miami's 2017 operating income using absorption costing is(a) $600,000, (b) $360,000, (c) $780,000, (d)$1,020,000, or(e) none of these. Show supporting calculations.

Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting amounts. Perform the calculations in thisstep, but select the correct operating income in the next step. (For amounts with a$0 balance, make sure to enter"0" in the appropriatecell.)

Absorption costing

Miami's 2017 operating income using absorption costing is

A.

$600,000.

B.

$360,000.

C.

$780,000.

D.

$1,020,000.

E.

none of these.

Requirement 2. Miami's 2017 operating income using variable costing is(a) $1,110,000, (b) $600,000, (c) $360,000, (d) $780,000, or(e) none of these. Show supporting calculations.

Begin by selecting the labels used in the variable costing calculation of operating income and enter the supporting amounts. Perform the calculations in thisstep, but select the correct operating income in the next step. (For amounts with a$0 balance, make sure to enter"0" in the appropriatecell.)

Variable costing

Miami's 2017 operating income using variable costing is

A.

$1,110,000.

B.

$600,000.

C.

$360,000.

D.

$780,000.

E.

none of these.