Fasetech, Inc. has collected the following data. Units produced 510 units Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs $150 per unit $16 per unit $10 per unit $10 per unit $16,000 per year $9 per unit $10,500 per year What is the operating income using absorption costing if 500 units are sold? A. $27,500 B. $38,315 C. $26,315 D. $31,641

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter5: Process Costing
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Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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Fasetech, Inc. has collected the following data.
Units produced
510 units
Sales price
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative costs
Fixed selling and administrative costs
$150 per unit
$16 per unit
$10 per unit
$10 per unit
$16,000 per year
$9 per unit
$10,500 per year
What is the operating income using absorption costing if 500 units are sold?
A. $27,500
B. $38,315
C. $26,315
D. $31,641
Transcribed Image Text:Fasetech, Inc. has collected the following data. Units produced 510 units Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs $150 per unit $16 per unit $10 per unit $10 per unit $16,000 per year $9 per unit $10,500 per year What is the operating income using absorption costing if 500 units are sold? A. $27,500 B. $38,315 C. $26,315 D. $31,641
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