Barry's Hobbies produces and sells a luxury animal pillow for $80.00 per unit. In the...
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Barry's Hobbies produces and sells a luxury animal pillow for $80.00 per unit. In the first month of operation, 3,000 units were produced and 2,250 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:
Variable manufacturing costs $38 per unit
Variable marketing costs $ 2 per unit
Fixed manufacturing costs $60,000 per month
Administrative expenses, all fixed $12,000 per month
Ending inventories:
Direct materials -0-
WIP -0-
Finished goods 750 units
What is operating income when using absorption costing?
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