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Consider the following situation for Donaldson Company for the prior year. The company produced 1,000 units and sold 900 units, both as budgeted. There were no beginning or ending work-in-process inventories and no beginning finished goods inventory. Budgeted and actual fixed costs were equal, all variable manufacturing costs are affected by volume of production only, and all variable selling costs are affected by sales volume only. Budgeted per unit revenues and costs were as follows.
Assuming that Donaldson uses variable costing, the operating income for the prior year wasA. $15,300. B. $14,200. C. $14,800. D. $13,600. |