Moody Manufacturing Inc. reported $80429 of operating income for the year by using variable costing. The following information also pertains to the current year:

	Beginning inventory	0
	Production	30982 units
	Sales	20735 units
	Variable manufacturing cost per unit	$13 per unit
	Fixed manufacturing overhead	$102422

What is the operating income (loss) under absorption costing?

Select one:

a. $80429

b. $46554

c. $114304

d. $131045

During 20x5, Bey Company reported an operating income of $82554 using absorption costing and an operating income of $67722 using variable costing. 18554 units were produced during 20x5 and sales during 20x5 totaled 13569. What is he fixed overhead application rate per unit (it has been stable for the past 3 years)?

Select one:

a. $2.98

b. $14832

c. $1.09

d. $0.80