The Browning Company Manufactures a Single Product; the Standard Costs

Multiple Choice

The Browning Company manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing $6. Selling and administrative costs are $2 per unit sold. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900 000 for the year. Information about Browning's production activity for the year is:
What is the profit under absorption costing?

A) $750 000
B) $1 250 000
C) $350 000
D) $500 000