Union Corporation Manufactures and Sells One Product

question 48

Multiple Choice

Union 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 24,000 units and sold 17,000 units. The company's only product is sold for $232 per unit.
Assume that the company uses an absorption costing system that assigns $22 of direct labor cost and $68 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

• A) $(102,000)
• B) $374,000
• C) $(830,000)
• D) $(256,000)

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Definitions:

Disadvantaged Populations

Groups of people who face greater obstacles to health, education, and economic opportunity due to social, economic, or environmental disadvantages.

Validity

The degree to which a test or measurement accurately reflects or assesses the specific concept that it is intended to measure.

Reliability

The degree to which an assessment tool or measurement produces stable and consistent results over repeated applications or observations.

Probability Sample

A sampling method in which every member of the population has a known and non-zero chance of being selected.