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The following information relates to KeenanKeenan Inc.'s Year 3 financials: Direct labor $380,000 Direct materials 180,000 Variable overhead 210,000 Fixed overhead 335,000 Variable SG&A expenses
The following information relates to
KeenanKeenan
Inc.'s Year 3 financials:
| Direct labor | $380,000 |
|---|---|
| Direct materials | 180,000 |
| Variable overhead | 210,000 |
| Fixed overhead | 335,000 |
| Variable SG&A expenses | 200,000 |
| Fixed SG&A expenses | 193,000 |
Year 3 period costs for
KeenanKeenan,
under both the absorption and variable cost methods, will be
A.
| Absorption Method | Variable Cost Method |
|---|---|
| $528,000 | $938,000 |
B.
| Absorption Method | Variable Cost Method |
|---|---|
| $393,000 | $938,000 |
C.
| Absorption Method | Variable Cost Method |
|---|---|
| $393,000 | $728,000 |
D.
| Absorption Method | Variable Cost Method |
|---|---|
| $528,000 | $728,000 |
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