Last Year, Richmon Company Produced 10,000 Units and Sold 6,000

Multiple Choice

Last year, Richmon Company produced 10,000 units and sold 6,000 units at a price of $20.Costs for last year were as follows:

Fixed factory overhead is applied based on expected production.Last year, Richmon expected to produce 10,000 units.
What is operating income for last year under absorption costing?

A) $39,000
B) $55,000
C) $63,100
D) $12,430
E) $29,340