Brady Company Provided the Following Information Regarding Its One and Only

Brady Company provided the following information regarding its one and only product -skateboards. $\begin{array}{ll}\text { Direct materials used } & \$ 200,000 \\\text { Direct labor } & 180,000 \\\text { Fixed overhead } & 100,000 \\\text { Fixed selling and adminis trative costs } & 150,000 \\\text { Variable overhead } & 120,000 \\\text { Variable selling and administrative } & 60,000 \\\text { Selling unit price } & 75 \\\text { Units produced and sold } & 10,000\end{array}$ is the difference in total product cost between the absorption approach and the contribution approach.

A) $150,000
B) $100,000
C) $120,000
D) None of these answers is correct.

Correct Answer:

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