Figure 8-2

question 100

Multiple Choice

Figure 8-2. Loring Company had the following data for the month:
Fixed overhead is $4,000 per month; it is applied to production based on normal activity of 2,000 units.During the month,2,000 units were produced.Loring started the month with 300 units in beginning inventory,with unit product cost equal to this month's unit product cost.A total of 2,100 units were sold during the month at price of $14.Selling and administrative expense for the month,all fixed,totaled $3,600.
Refer to Figure 8-2.What is the unit product cost under absorption costing?

• A)$8.60
• B)$10.60
• C)$8.20
• D)$10.20
• E)$7.20

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Definitions:

Adolescent

A developmental stage occurring between childhood and adulthood, typically associated with the teenage years, marked by rapid physical, emotional, and social changes.

Young Adulthood

The life stage following adolescence, typically between the ages of 20 to 40, characterized by increased independence and responsibility.

Storage Decay

The theory that memory fades due to the mere passage of time, unless this information is used or rehearsed after learning.

French

A Romance language originating from France, known for its global use as a primary or second language in many countries and international institutions.