Dallavalle Corporation Manufactures and Sells One Product

question 17

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.
Assume that the company uses a variable costing system that assigns $10 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:

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

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Definitions:

Industrial Revolution

A period of major industrialization from the late 18th to early 19th century that transformed mainly agrarian, rural societies in Europe and America into industrialized, urban ones.

Social World

The sphere of human interaction and relationship, influenced by cultural, economical, and political structures.

Urbanization

The process by which cities grow and societies become more urban, typically involving the migration of people from rural to urban areas.

Agricultural

Pertaining to farming or the cultivation of plants and animals to produce food, fiber, medicinal plants, and other products to sustain and enhance human life.