Plummer Corporation has provided the following data for its two most recent years of operation: Selling price per unit$44Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$9Direct labor$6Variable manufacturing overhead$4Fixed manufacturing overhead per year$63,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold$5Fixed selling and administrative expense per year$66,000 Year 1 Year 2Units in beginning inventory0 2,000Units produced9,000 7,000Units sold7,000 8,000Units in ending inventory2,000 1,0000 The net operating income (loss) under absorption costing in Year 2 is closest to:
A. $132,000
B. $26,000
C. $92,000
D. $31,000
Answer: B
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