This Test: 50 pts po: The Heartake Corporation manufactures and sells toy gyrosc
ID: 2437721 • Letter: T
Question
This Test: 50 pts po: The Heartake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last Variable selling and administrative expenses per unit Fixed manufacturing overhead (in total) Fixed selling and administrative expenses (in total) Units produced during the year Units sold during year $8.40 $1.86 $4.85 $75,000 84,000 500,000 170,000 Using absorption costing, what is operating income for last year? (Round any intermediary calculations to the nearest cent.) O A. $861,200 B. $177,800 O C. $1,994,800 O D. $1,428,000 Click to select your answer https://quizlet.com/123463115/acct-chapters-67 e manufacturing overhead+ fixed... selling and admin (Explanation / Answer
Answer is B. $ 177800 Explanation: Unit cost under Absorption costing: Variable Manufacturing cost per unit 1.86 Fixed Manufacturing Cost per unit (75000/500000) 0.15 Unit product cost 2.01 Sales revenue (170000*8.40) 1428000 Less: Cost of Goods sold (170000*2.01) 341700 Gross Margin 1086300 Less: Selling and Admin oh Variable (170000*4.85) 824500 Fixed 84000 Net Operating income 177800