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Question - Beckham Company has the following information available:
Selling price per unit $100
Variable cost per unit $55
Fixed costs per year $400,000
Expected sales per year 20,000 units
Required - What is the expected operating income for a year?
A. $700,000
B. $480,000
C. $680,000
D. $500,000
Closing under, Make the closing entry for the $10,000 of overapplied overhead, assuming that the balance is not considered to be material.
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