A Company Produces a Single Product

question 294

Multiple Choice

A company produces a single product. Variable production costs are $21 per unit and variable selling and administrative expenses are $4 per unit. Fixed manufacturing overhead totals $30,000 and fixed selling and administration expenses total $36,000. Assuming a beginning inventory of zero, production of 6,000 units and sales of 5,600 units, the dollar value of the ending inventory under variable costing would be:

• A) $10,000
• B) $8,400
• C) $12,000
• D) $14,400

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Definitions:

Small Hydropower

Hydroelectric power systems with a capacity of up to 10 megawatts that utilize flowing water to generate electricity.

Carbon Dioxide

Known for being both colorless and odorless, this gas forms as a result of burning organic matter and carbon, as well as from the process of respiration. It is an inherent element of the air, utilized by plants for photosynthesis.

Tax Credits

Deductions allowed by a government on the taxpayer's income tax if they meet certain requirements, encouraging or rewarding specific behaviors or investments.

Energy Efficiency

The practice or goal of reducing the amount of energy required to provide products and services, aiming to lessen energy consumption and environmental impact.