What is operating income for last year

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Reference no: EM132734178

Question - Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12.

Costs for last year were as follows:

Direct materials - $25,000

Direct labor - 35,000

Variable factory overhead - 12,000

Fixed factory overhead - 37,000

Variable selling expense - 9,000

Fixed selling expense - 7,500

Fixed administrative expense - 15,500

Fixed factory overhead is applied based on expected production. Last year, Fabre expected to produce 20,000 units.

Required - What is operating income for last year under variable costing?

A. $111,800

B. $91,780

C. $82,200

D. $78,400

E. $66,350

Reference no: EM132734178

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