Bethel,Inc What Is the Operating Income Using Variable Costing If 500

question 33

Multiple Choice

Bethel,Inc.has collected the following data.(There are no beginning inventories.) $$\begin{array} { | l | r | c | } \hline \text { Units produced } & 600 & \text { units } \\\hline \text { Sales price } & \$ 120 & \text { per unit } \\\hline \text { Direct materials } & \$ 10 & \text { per unit } \\\hline \text { Direct labor } & \$ 10 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 7 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 16,400 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 7 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 11,700 & \text { per year } \\\hline\end{array}$$ What is the operating income using variable costing if 500 units are sold?

• A) $14,900
• B) $43,000
• C) $48,300
• D) $11,100

---

Definitions:

Sample Coefficient

A statistical measure calculated from a sample of data, used to estimate the characteristics or parameters of a population.

Least Squares Regression

A method to estimate the coefficients of a regression line by minimizing the sum of the squares of the differences between observed and predicted values.

Coefficient of Determination

A statistical measure that determines the proportion of variance in the dependent variable predictable from the independent variable(s).

Coefficient of Correlation

This is a statistical measure that calculates the strength and direction of the relationship between two continuous variables.