Year 1 financial data for the ABC Company is as follows:…

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Year 1 financial data for the ABC Company is as follows: Sales………………………………………………………………$5,000,000 Direct materials………………………………………………………850,000 Direct manufacturing labor…………………………………………1,700,000 Variable manufacturing overhead……………………………………400,000 Fixed manufacturing overhead………………………………………750,000 Variable SG&A………………………………………………………150,000 Fixed SG&A…………………………………………………………250,000 Under the absorption method, Year 1 Cost of Goods sold will be: a. $2,550,000 b. $2,950,000 c. $3,100,000 d. $3,700,000

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