Leheny Corporation Manufactures and Sells One Product

question 11

Multiple Choice

Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit.
Assume that the company uses a variable costing system that assigns $21 of direct labor cost to each unit that is produced. The net operating income under this costing system is:

• A) $1,400,000
• B) $1,005,000
• C) $1,110,000
• D) $580,000

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Definitions:

Agoraphobia

An anxiety disorder characterized by intense fear of places where escape might be difficult, or help might not be available, often leading to avoidance of such places.

Panic Disorder

A mental health condition characterized by sudden and repeated episodes of intense fear accompanied by physical symptoms such as chest pain, heart palpitations, and shortness of breath.

Avoidance Behaviors

Avoidance behaviors are actions taken to prevent or evade a perceived threat or discomfort, often seen in anxiety and other psychological conditions.

Extinction

In psychology, the process by which a conditioned response decreases in frequency and eventually disappears.