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Hayes Company operated at normal capacity during the current year, producing 54171 units of its single...

Hayes Company operated at normal capacity during the current year, producing 54171 units of its single product. Sales totalled 40510 units at an average price of $25.15 per unit. Variable manufacturing costs were $10.21 per unit, and variable marketing costs were $5.39 per unit sold. Fixed costs were incurred uniformly throughout the year and amounted to $179380 for manufacturing and $78235 for marketing. There were no opening inventories. What is Hayes operating income (loss) under absorption costing? Select one:

a. $129255

b. $247392

c. $386870

d. $174492

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Answer #1

Answer : D) $174,492

Opening Inventory Units Produced Units Sold Closing Inventory Selling Price per unit Variable Marketing Expenses Fixed Overhe

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