1C1G DURING THE MONTH OF MAY, ROBINSON CORPORATION SOLD 1,000 UNITS....

175. CSO: 1C1e LOS: 1C1g

During the month of May, Robinson Corporation sold 1,000 units. The cost per unit for

May was as follows.

Cost Per Unit

Direct materials $ 5.50

Direct labor 3.00

Variable manufacturing overhead 1.00

Fixed manufacturing overhead 1.50

Variable administrative costs .50

Fixed administrative costs 3.50

Total $15.00

May’s income using absorption costing was $9,500. The income for May, if variable

costing had been used, would have been $9,125. The number of units Robinson

produced during May was

a. 750 units.

b. 925 units.

c. 1,075 units.

d. 1,250 units.