Business, 18.12.2019 00:31 bob4059

Donovan company incurred the following costs while producing 500 units: direct materials $10 per unit, direct labour $25 per unit, variable manufacturing overhead, $15 per unit, total fixed overhead costs, $10,000; variable selling and administrative costs, $5 per unit; total fixed selling and administrative costs, $7,500. there are no beginning inventories.

what is the operating income using absorption costing if 500 units are sold for $100 each?

a. $500
b. $2,500
c. $2,750
d. $5,000

Answers: 2

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Donovan company incurred the following costs while producing 500 units: direct materials $10 per un...