Badlands,Inc The Operating Income Calculated Using Variable Costing and Absorption Costing

Multiple Choice

Badlands,Inc.reports the following information for the year ended December 31: $$\begin{array} { | l | r | } \hline \text { Units sold } & { 590 \text { units } } \\\hline \text { Sales price } & \$ 130 \text { per unit } \\\hline \text { Direct materials } & \$ 28 \text { per unit } \\\hline \text { Direct labor } & \$ 9 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 15 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 25 \text { per unit } \\\hline \text { Variable selling and administrative costs } & \$ 6 \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 12,400 \text { per year } \\\hline\end{array}$$ The operating income calculated using variable costing and absorption costing amounted to $10,000 and $13,300,respectively.There were no beginning inventories.Determine the total number of units produced during the year.

A) 590 units
B) 722 units
C) 26 units
D) 132 units