Reference no: EM132541256

Question - Last year, Fingal Pty Ltd produced 20,000 units and sold 18,000 units at a price of $12. Costs for last year were as follows:

Direct materials $25,000

Direct labour 35,000

Variable factory overhead 12,000

Fixed factory overhead 37,000

Variable selling expense 9000

Fixed selling expense 7500

Fixed administrative expense 15,500

Fixed factory overhead is applied based on expected production. Last year, Fingal expected to produce 20,000 units. What is operating income for last year under absorption costing?