The Browning Company manufactures a single product;the standard costs per unit being variable manufacturing $8,fixed manufacturing $6.Selling and administrative costs are $2 per unit sold.The selling price is $20 per unit.Actual and budgeted fixed overhead is $900 000 for the year.Information about Browning's production activity for the year follows:
What is the profit under absorption costing?

A) $750 000
B) $1 250 000
C) $350 000
D) $500 000

Question

The Browning Company manufactures a single product;the standard costs per unit being variable manufacturing $8,fixed manufacturing $6.Selling and administrative costs are $2 per unit sold.The selling price is $20 per unit.Actual and budgeted fixed overhead is $900 000 for the year.Information about Browning's production activity for the year follows:
What is the profit under absorption costing?

A) $750 000 
B) $1 250 000 
C) $350 000 
D) $500 000

Quizplus · Accepted Answer

The Answer of The Browning Company manufactures a single product;the standard costs per unit being variable manufacturing $8,fixed manufacturing $6.Selling and administrative costs are $2 per unit sold.The selling price is $20 per unit.Actual and budgeted fixed overhead is $900 000 for the year.Information about Browning's production activity for the year follows:
What is the profit under absorption costing?

A) $750 000 
B) $1 250 000 
C) $350 000 
D) $500 000

The Browning Company Manufactures a Single Product;the Standard Costs Per