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ProTech began business at the start of the current year. The company planned to produce 40,000 units, and actual production conformed to expectations. Sales totaled 36,000 units at $40 each. Costs incurred were:
Variable manufacturing overhead per unit$18 Fixed manufacturing overhead 297,000 Variable selling and administrative cost per unit 5 Fixed selling and administrative cost per unit 188,000
Problem 1: If there were no variances, the company's absorption-costing income would be:
Multiple Choice
Option 1: $81,700.Option 2: $156,700.Option 3: $167,200.Option 4: $612,000.Option 5: None of the answers is correct.
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