Scavenger Company, a manufacturer of recycling bins, began operations on January 1 of the current year. During this time, the company produced 85,000 units and sold 75,000 units at a sales price of $17.50 per unit. Cost information for this year is shown in the following table:

Production costs Direct materials Direct labor Variable overhead Fixed overhead

Nonproduction costs Variable selling and administrative Fixed selling and administrative

$3.25 per unit $3.50 per unit $52,250 in total $275,950 in total

$17,250 in total $50,375 in total

12. Given the Scavenger Company data, what is net income using absorption costing? A. $404,187.50 B. $416,572.06 C. $449,036.76

D. $448,787.50 E. $396,048.00

13. Given the Scavenger Company data, what is net income using variable costing? A. $404,187.50 B. $416,572.06 C. $449,036.76

D. $448,787.50 E. $396,048.00