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

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Definitions:

Acute Pain

A type of pain that is intense and lasts for a short duration, typically serving as a warning of disease or a threat to the body.

Sore Throat

Inflammation of the throat, causing pain or irritation, often a symptom of a viral or bacterial infection.

Kidney Function

The vital role played by the kidneys in filtering waste from the bloodstream and maintaining body fluid balance.

Nursing Process

A systematic approach to providing patient-centered care through assessment, diagnosis, planning, implementation, and evaluation.