Q 8.63: Malibu Manufacturing Ltd. has the following budgeted information for their only product for the first three years of operation: Years Two $30.00 50,000 One $30.00 50,000 Sales per unit Sales (in units) Three $30.00 50,000 Production (in units) Total fixed production cost Variable product cost/unit 80,000 $200,000 $3.50 50,000 $200,000 $3.50 20,000 $200,000 If Malibu follows through with their budget exactly as planned, what will be the total COGS in Year Three under absorption costing? A $495,000 B $375,000 C $675,000 D $500,000