Tremble Corporation Manufactures and Sells One Product

question 14

Multiple Choice

Tremble 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 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.
Assume that the company uses a variable costing system that assigns $11 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:

• A) $105 per unit
• B) $180 per unit
• C) $94 per unit
• D) $210 per unit

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Sale Received

Sale Received refers to the total amount of money obtained from the sale of goods or services before any deductions or returns.

Purchase Cost

The total amount expended to acquire a good or service, including the item's price and additional charges related to procurement.