Reference no: EM133201848

Fantastic Fabrics Corporation manufactures company uniforms. Management would like information on the profitability of each individual product line (jeans, shirts, sweaters, and dresses). The corporation has provided financial information regarding the four product lines and the activities involved in the manufacturing process: Jeans Shirts Sweaters Dresses Revenue $300,000 $498,000 $120,000 $210,000 Direct Costs $200,000 $370,000 $99,000 $165,000 Number of Labour Hours 1,250 1,500 2,000 1,300 Number of Machine Hours 1,700 1,900 2,000 1,760 Items Sold 100,000 155,000 95,000 45,000 The company's overhead costs and cost allocation bases are indicated in the following table. Activity Total Costs Cost Allocation Base Production $71,000 number of machine hours Finishing $130,000 number of labour hours Customer Support $90,000 number of items sold Assume the company uses an activity-based costing system to allocate support costs to the four product lines. Calculate the operating income for each product line.