Octagonal Company has the following information for the current year: Selling price $150 per unit Variable production costs $40 per unit produced Variable selling and admin. expenses $16 per unit sold Fixed production costs $200,000 Fixed selling and admin. expenses $140,000 Units produced 10,000 units Units sold 8,000 units There were no beginning inventories. What is the net income for Octagonal using the absorption-costing method?
Octagonal Company has the following information for the current year: Selling price $150 per unit Variable production costs $40 per unit produced Variable selling and admin. expenses $16 per unit sold Fixed production costs $200,000 Fixed selling and admin. expenses $140,000 Units produced 10,000 units Units sold 8,000 units There were no beginning inventories. What is the net income for Octagonal using the absorption-costing method?
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 13PB: Submarine Company produces only one product and sells that product for $150 per unit. Cost...
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Octagonal Company has the following information for the current year:
There were no beginning inventories.
What is the net income for Octagonal using the absorption-costing method?
Selling price | $150 per unit |
Variable production costs | $40 per unit produced |
Variable selling and admin. expenses | $16 per unit sold |
Fixed production costs | $200,000 |
Fixed selling and admin. expenses | $140,000 |
Units produced | 10,000 units |
Units sold | 8,000 units |
There were no beginning inventories.
What is the net income for Octagonal using the absorption-costing method?
a.$452,000
b.$480,000
c.$1,200,000
d.$600,000
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