Reference no: EM132639784

Airline Corporation records for month of February:

Per Unit Per Month

Selling price $200,000

Direct materials used in production 40,000

Direct labor 10,000

Variable manufacturing overhead 2,000

Fixed manufacturing overhead $140,000

Variable selling and administrative expenses 20,000

Fixed selling and administrative expenses 40,000

Problem 1: Assuming the absorption costing method is used, what is the total manufacturing costs added to work in process during the month of February?

Option 1: $52,000

Option 2: $92,000

Option 3: $87,000

Option 4: $122,000