Figure 8-1. Last year,Fabre Company produced 20,000 units and sold 18,000 units at a price of $12.Costs for last year were as follows:
Fixed factory overhead is applied based on expected production.Last year,Fabre expected to produce 20,000 units.
Refer to Figure 8-1.What is operating income for last year under absorption costing?
A)$41,000
B)$67,520
C)$85,900
D)$111,300
E)$45,000

Question

Figure 8-1. Last year,Fabre Company produced 20,000 units and sold 18,000 units at a price of $12.Costs for last year were as follows:
 Fixed factory overhead is applied based on expected production.Last year,Fabre expected to produce 20,000 units.
Refer to Figure 8-1.What is operating income for last year under absorption costing?
A)$41,000 
B)$67,520 
C)$85,900 
D)$111,300 
E)$45,000

Quizplus · Accepted Answer

The Answer of Figure 8-1. Last year,Fabre Company produced 20,000 units and sold 18,000 units at a price of $12.Costs for last year were as follows:
 Fixed factory overhead is applied based on expected production.Last year,Fabre expected to produce 20,000 units.
Refer to Figure 8-1.What is operating income for last year under absorption costing?
A)$41,000 
B)$67,520 
C)$85,900 
D)$111,300 
E)$45,000