Doon Company incurred the following costs while producing 580 units direct materials. $14 per unit direct labor. $22 per unit variable manufacturing overhead, $11 per unit total fixed manufacturing overhead costs. $12,100, varable selling and administrative costs. $2 per unit, total fixed selling and administrative costs, $8,120 There are no beginning inventories What is the operating income using absorption costing if 580 units are sold for $110 each? OA $8,540 OB. $9,480 OC. $15,000 OD. $26,840

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Chapter6: Proudction Costs
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Doon Company incurred the following costs while producing 580 units direct materials. $14 per unit, direct labor, $22 per unit, variable manufacturing overhead, $11 per unit, total fixed
manufacturing overhead costs, $12,100; variable selling and administrative costs, $2 per unit; total fixed selling and administrative costs. $8,120 There are no beginning inventorios.
What is the operating income using absorption costing if 580 units are sold for $110 each?
OA. $0,540
OB. 59,480
OC. $15,000
OD. $26,840
CIE
Transcribed Image Text:不 Doon Company incurred the following costs while producing 580 units direct materials. $14 per unit, direct labor, $22 per unit, variable manufacturing overhead, $11 per unit, total fixed manufacturing overhead costs, $12,100; variable selling and administrative costs, $2 per unit; total fixed selling and administrative costs. $8,120 There are no beginning inventorios. What is the operating income using absorption costing if 580 units are sold for $110 each? OA. $0,540 OB. 59,480 OC. $15,000 OD. $26,840 CIE
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