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Nunya Company reported the following information for the first three years of operations Year1 Year2 Year 3 15,00020,000 24,000 12,00019,200 26,000 Units produced Units solod
Nunya Company reported the following information for the first three years of operations Year1 Year2 Year 3 15,00020,000 24,000 12,00019,200 26,000 Units produced Units solod Variable production cost per unit Fixed production cost Variable selling cost per unit Fixed selling cost Normal overhead base (in units) $4 $24,000 $24,000 $24,000 $3 $14,000 $14,000 $14,000 20,00024,000 16,000 $3 $3 Assume fixed overhead is applied based on the normal overhead base for each year. (1 point) If the company had an operating income of $18,500 in Year 2 under variable costing, what was their operating income under absorption costing in Year 2? 4 a. $22,300 b. $18,300 c. $19,300 d. $19,460 e. $18,260 f. $18,700 g. $19,780 h. None of the above
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