The Crab Shack Experienced the Following Costs in 2014 (Assume

question 12

Multiple Choice

The Crab Shack experienced the following costs in 2014 (Assume the same unit costs in all years) : $\begin{array}{lr}\text { Direct materials }&\$ 2.25 \text { per unit }\\\text { Direct labor }&\$ 1.50 \text { per unit }\\\text { Manufacturing overhead costs }\\\text { Variable } & \$ 1.10 \text { per unit } \\\text { Fixed } & \$ 60,000\\\text { Selling \& administrative costs }\\\text { Variable selling } & \$ 0.80 \text { per unit } \\\text { Fixed selling } & \$ 9,000 \\\text { Fixed administrative } & \$ 13,000\end{array}$ There were 1,800 units in beginning inventory. During the year, the company manufactured 24,000 units and sold 25,000 units. If net income using variable costing was $76,250, how much is net income using full costing?

• A) $5,880
• B) $79,250
• C) $73,750
• D) $74,350

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Definitions:

Law Enforcement

The system of organizations and individuals (such as police) empowered to uphold and enforce the laws and public order.

Involuntary Commitment

A legal process through which individuals with severe mental illness are court-mandated to receive treatment in a psychiatric hospital or facility.

Psychiatric Care

Medical and therapeutic treatment for individuals with mental health disorders to improve or maintain their psychological state.

Self And Others

The understanding and distinction between one's own identity, thoughts, and feelings, and those of other people, crucial for interpersonal relations and empathy.