A Company Has the Following Information for Its First Month

question 67

Multiple Choice

A company has the following information for its first month of operations: $$\begin{array} { l r } \text { Raw materials used } & \$ 37,500 \\\text { Sales } \$ 97.50 \text { per unit) } & \$ 117,000 \\\text { Direct labor } & \$ 63,000 \\\text { Variable factory overhead } & \$ 25,500 \\\text { Fixed factory overhead } & \text { unknown } \\\text { Variable selling and administrative } & \$ 4,500 \\\text { Fixed selling and administrative } & \$ 7,500 \\\text { Gross profit } & \$ 35,000 \\\text { Contribution margin } & \text { unknown }\end{array}$$ The company sold half of the units it produced.____ is the cost of goods sold under absorption costing.

• A)$45,000
• B)$117,000
• C)$82,000
• D)$63,000

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Definitions:

Injunction

A legal order by a court that requires a party to do, or refrain from doing, certain acts.

Nuisance

An act, condition, or thing that is illegal because it interferes with the rights of others, specifically in terms of their comfort, health, or safety.

Occupiers' Liability Act

Legislation that outlines the duty of care owed by individuals or entities that control land or buildings to those who enter the premises.

Nonfeasance

The failure to perform an act that one has a duty to perform, often resulting in liability.