Morwenna, Inc Calculate the Operating Income for August Using Absorption Costing

Multiple Choice

Morwenna, Inc. reports the following information for August: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 900,000 \\\hline \text { Variable Cost of Goods Sold } & 120,000 \\\hline \text { Fixed Cost of Goods Sold } & 60,000 \\\hline \text { Variable Selling and Administrative Costs } & 150,000 \\\hline \text { Fixed Selling and Administrative Costs } & 50,000 \\\hline\end{array}$$ Calculate the operating income for August using absorption costing.

A) $520,000
B) $270,000
C) $1,100,000
D) $380,000