Anatase,Inc.reports the following information:

\begin{array} { | l | r | c | } \hline \text { Units produced } & 2,500 & \text { units } \\\hline \text { Units sold } & 2,000 & \text { units } \\\hline \text { Sales price } & \$ 200 & \text { per unit } \\\hline \text { Direct materials } & \$ 40 & \text { per unit } \\\hline \text { Direct labor } & \$ 25 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 20 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 90,000 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 15 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 75,000 & \text { per year } \\\hline\end{array}

Assume that the production costs and sales prices were the same in the previous year.Assume no beginning inventories.
Requirements:
a)Calculate unit product cost using absorption costing and variable costing.
b)Calculate the operating income using absorption costing and variable costing.

Which of the Following Statements Is TRUE of Absorption Costing

Multiple Choice

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