Answer:
Option (c) is correct.
Explanation:
Unit product cost under absorption costing:
= Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead
= $ 13 per unit + $22 + $18 + $22
= $75 per unit
Operating Income using absorption costing
Operating Income :
= 600 × $120 - 600 × $75 - 600 × $10 - $8,400
= $72,000 - $45,000 - $6,000 - $8,400
= $12,600