Andys Water Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for...

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Accounting

Andys Water Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for last year:
Direct labor: 9,000 hours @ $20 per hr.
Production manager salary: $75,000
Factory rent: $36,000
Equipment maintenance: $15,000(considered a variable expense)
Equipment depreciation: $15,000
Production for the year: 12,000 units
Total Revenue: $1,500,000
Total aquariums sold during the period: 15,000 units
Operating Income under variable costing (after non-production expenses): $306,000
Assume that the fixed costs were the same on a per-unit basis during the prior period.
What would Operating Income be under absorption costing? (Round per-unit costs to the nearest cent.)
Select one:
a. $341,235
b. None of these options are correct.
c. $270,765
d. $337,500
e. $274,500

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