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Pane inc. manufactures hair brushed that sell wholesale for $2.60 per unit. Budgeted production in 2006 and 2007 was 2,500 units. There was no beginning

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Pane inc. manufactures hair brushed that sell wholesale for $2.60 per unit. Budgeted production in 2006 and 2007 was 2,500 units. There was no beginning inventory in 2006. For 2006- units sold- 2,500. Units produced 3,000. Costs: variable factory overhead- 0.65 per unit. Fixed factory- $1,290.00. Variable marketing- $0.80. Fixed admin- $650.00. For 2007, units sold 3,000. Units produced- 2,500. Variable factory OH- $0.65. Fixed factory- $1,290. Variable marketing- $0.80. Fixed admin.- $650.00. Full costing operating income for 2006 is calculated as: A. $935. B. 1,150. C. 1,220. D. 1,295. E. $1,510.

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