Figure 8-2

question 96

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 absorption costing?

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

---

Definitions:

Muscle Contractions

The physiological process where muscles change length and tension in response to a stimulus, allowing movement of the body or internal organs.

Isoelectric Line

In electrocardiography, the baseline level of the chart when no electrical activity is detected in the heart.

ECG

Electrocardiogram, a test that records the electrical activity of the heart over a period of time, used to detect heart abnormalities.

S-T Segment

A section of the electrocardiogram (ECG) tracing between the S wave and the start of the T wave, representing the interval between ventricular depolarization and repolarization.