Answer Happy

Paddle Away Corporation produces and sells one model of stand up paddle board (SUP). They have budgeted the following for the month of May Budgeted selling price per SUP Budgeted sales for May Raw materials to produce one SUP Raw materials cost Direct labor required to produce one SUP Direct labor wage rate $ 98 per SUP sold 11,000 SUPS 5 pounds $3.00 per pound 2.5 direct labor-hours $.18.00 per direct labor-hour Predetermined overhead rate (all variable) Variable selling and administrative expense $ 11.00 per direct labor-hour $2.70 per unit sold Fixed selling and administrative expense $ 80,000 per month For May, PaddleAway Corporation's estimated net operating income would be budgeted to be

O O O O $35,500 $42,000 $5,800 $85,800