Neef Corporation has provided the following data for its two most recent years of operation:   Selling price per unit$84Manufacturing costs:  Variable manufacturing cost per unit produced:  Direct materials$12Direct labor$5Variable manufacturing overhead$4Fixed manufacturing overhead per year$432,000 Selling and administrative expenses:  Variable selling and administrative expense per unit sold$5Fixed selling and administrative expense per year$61,000 Year 1 Year 2Units in beginning inventory0 3,000Units produced during the year12,000 9,000Units sold during the year9,000 10,000Units in ending inventory3,000 2,000The net operating income (loss) under absorption costing in Year 2 is closest to:

A. $75,000
B. $186,000
C. $87,000
D. $136,000


Answer: A

Business

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