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Novak Ltd makes tennis shoes. Budgeted fixed manufactoring overhead for the period is $1,800,000, and 200,000 units are budgeted to be made. Novak Ltd did

Novak Ltd makes tennis shoes.

Budgeted fixed manufactoring overhead for the period is $1,800,000, and 200,000 units are budgeted to be made.

Novak Ltd did manufacture 200,000 units over the period, and sold 190,000 of them.

Variable costing profit for the period was $300,000.

The owner-manager, Novak Djoker, asks you what absorption costing profit would have been for the period. Assuming constant fixed overhead rates per unit across all relevant periods, the answer is:

A) $210,000 B) $300,000 C) $390,000 D) $480,000

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