Figure 8-2

question 74

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 variable costing?

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

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Definitions:

New Features

Refers to the additions or enhancements made to a product, service, or software application to improve functionality or user experience.

Buying And Selling

The basic components of trade, involving the exchange of goods or services for payment or barter.

Value Directly

The immediate impact or benefit that an action, service, or product brings to a consumer or business.

Information Systems

Integrated systems that collect, store, manage, and interpret data from various business activities.