ABC Corporation produces a single product that it sells for $9 per unit. During the...
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Accounting
ABC Corporation produces a single product that it sells for $9 per unit. During the first year of operations, 100,000 units were produced and 80,000 units were sold. Manufacturing costs and selling and administrative expenses for the year were as follows:
Fixed Costs
Variable Costs
Raw materials
--
$1.75 per unit produced
Direct labour
--
1.25 per unit produced
Factory overhead
$100,000
0.50 per unit produced
Selling and administrative
70,000
0.60 per unit sold
What was ABC Corporation's operating income for the year using variable costing?
a.
$181,000.
b.
$222,000.
c.
$372,000.
d.
$271,000.
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