Peak Manufacturing produces snow blowers. The selling price per snow blower is $

Question

Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:
Direct Material per unit
$20

Direct Labor per unit
12

Variable manufacturing overhead per unit
10

Fixed manufacturing overhead per year
$148,500



In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much is net income using full costing? (Points : 4)
1,641,000
$1,590,000
$1,441,500
$1,491,000

Explanation / Answer

$1,590,000

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