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 variable costing?

A) $111,800
B) $91,780
C) $82,200
D) $78,400
E) $66,350