“Last year, Peck Company produced 10,000 units and sold 9,000 units. Fixed manufacturing overhead costs were $27,000, and variable manufacturing overhead costs were $3.70 per unit. For the year, one would expect net operating income under absorption costing to be:”,”$2,700 more$27,000/10,000 = $2.70 10,000 – 9,000 = 1,000 1,000 x 2.70 = $2
700″