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:

Development

The process of growth and change that a person goes through over their lifetime, encompassing physical, cognitive, and socio-emotional changes.

Opinion

An individual's belief or judgment about something, not necessarily based on fact or knowledge.

Reciprocal Influences

A concept indicating that two or more factors affect each other mutually, shaping outcomes or behaviors in a bidirectional manner.

Incremental Models

Theoretical models in which change is considered steady and specific to particular behaviors or mental activities, rather than being marked by major, sweeping reorganizations that affect many behaviors at once, as in stage theories.