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! Required information Use the following information for the Exercise below. ( Algo ) [ The following information applies to the questions displayed below. ]

!
Required information
Use the following information for the Exercise below. (Algo)
[The following information applies to the questions displayed below.]
Barnes Company reports the following for its product for its first year of operations.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
$36 per unit
$26 per unit
$12 per unit
$70,000 per year
$3 per unit
$28,000 per year
Exercise 19-5(Algo) Computing gross profit at different production levels LO P2
The company sells its product for $140 per unit. Compute gross profit using absorption costing assuming the company (a) produces and sells 2,800 units and (b) produces 3,500 units and sells 2,800 units.
\table[[Gross profit using absorption costing,\table[[(a)2,800 Units Produced],[and 2,800 Units Sold]],\table[[(b)3,500 Units Produced],[and 2,800 Units Sold]]],[Sales,,],[Cost of goods sold,,],[Gross profit,,]]
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