Figure 8-1

Multiple Choice

Figure 8-1. 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:
Fixed factory overhead is applied based on expected production.Last year,Fabre expected to produce 20,000 units.
Refer to Figure 8-1.What is operating income for last year under absorption costing?

A) $41,000
B) $67,520
C) $85,900
D) $111,300
E) $45,000