Absorption costing net operating income during Year 2 was:

(A) $350,000

(B) $370,000

(C) $430,000

(D) $470,000

The product cost under absorption costing during Year 2 was:

(A) $36/unit

(B) $35/unit

(C) $31/unit

(D) $40/unit

The following information pertains to questions (l) through (3) Acme Co. manufactures and sells one product. The following data are available for the previous two years: Year 1 Year 2 Units sold 80,000 100,000 Units produced 100,000 80,000 Variable costs per unit Direct materials S15 Direct labor Manufacturing overhead S5 SG&A Fixed costs per year: Manufacturing overhead S400,000 SG&A S50,000 Absorption costing net operating income $330,000 Variable costing net operating income S450,000 The balance in the inventory account in the beginning of Year 1 was zero