Dallavalle Corporation Manufactures and Sells One Product

question 32

Multiple Choice

Dallavalle 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 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit.
The unit product cost under super-variable costing is:

• A) $214 per unit
• B) $93 per unit
• C) $170 per unit
• D) $103 per unit

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Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in the air and absorbed by plants in photosynthesis.

Iron

A metallic element (Fe) that is vital for biological processes in humans and other organisms, such as oxygen transport and cellular metabolism.

Scrap Metal

Waste metal materials that can be recycled and reused, often collected from leftover products, buildings, or discarded industrial machinery.

Energy

The capacity to do work, manifest in forms such as heat, light, motion, and chemical bonds, essential to human society for various applications.