Figure 8-2

question 62

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 operating income under variable costing?

• A)$3,540
• B)$7,980
• C)$11,340
• D)-$540
• E)$3,740

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Definitions:

Subpoena

A document issued by a court that orders an individual to appear as a witness at a legal proceeding, or to present documents or evidence relevant to the case.

Animal Protection Commission

A governing body or organization dedicated to enforcing laws and regulations that protect animals from cruelty and harm.

Criminal Penalties

Sanctions imposed by a criminal court, including fines, imprisonment, or other punishments, for violations of criminal laws.

Adjudicate

To adjudicate means to make a formal judgment or decision about a problem or disputed matter.