TB MC Qu. 19-125 (Algo) Ace Company is a manufacturer of...

Ace Company is a manufacturer of basketballs and began operations this year. The company produced 4,100 units and sold 3,550 units. Each basketball was sold at a price of $50. Fixed overhead costs are $51,000 per year, and fixed selling and administrative costs are $44,600 per year. The company also reports the following per unit variable costs for the year.

Direct materials	$ 8.00	per unit
Direct labor	$ 6.00	per unit
Variable overhead	$ 5.00	per unit
Variable selling and administrative expenses	$ 3.00	per unit

Compute income under variable costing.

Multiple Choice

• $99,400

• $95,600

• $3,800

• $67,157

• $162,757