Locklear,Inc The Operating Income Calculated Using Variable Costing and Absorption Costing

question 64

Multiple Choice

Locklear,Inc.reports the following information for the year ended December 31: $$\begin{array} { | l | r | c | } \hline \text { Units sold } & 650 & \text { units } \\\hline \text { Sales price } & \$ 130 & \text { per unit } \\\hline \text { Direct materials } & \$ 25 & \text { per unit } \\\hline \text { Direct labor } & \$ 8 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 15 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 15 & \text { per unit } \\\hline \text { Variable selling and administrative costs } & \$ 6 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 14,000 & \text { per year } \\\hline\end{array}$$ The operating income calculated using variable costing and absorption costing amounted to $9100 and $11,200,respectively.There were no beginning inventories.Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year.

• A) $11,850
• B) $9750
• C) $26,000
• D) $31,200

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Definitions:

(2R,3R)-2,3-dibromo-3-chloropentane

A chiral compound featuring a five-carbon chain with bromine atoms attached to the second and third carbons, as well as a chlorine atom on the third carbon, with a specific three-dimensional arrangement.

Asymmetric Carbon

A carbon atom bonded to four different atoms or groups, resulting in a chiral center that can have two different spatial arrangements (enantiomers).

R or S

Designations used in stereochemistry to describe the absolute configuration of chiral centers in molecules.

Diastereomer

Stereoisomers that are not mirror images of each other.