Hawk Company Provided the Following Information Regarding Its Only Product--Skateboards

question 69

Multiple Choice

Hawk Company provided the following information regarding its only product--skateboards. $\begin{array}{lr}\text { Direct materials used } & \$ 375,000 \\\text { Direct labor } & 170,000 \\\text { Fixed overhead } & 95,000 \\\text { Variable overhead } & 20,000 \\\text { Variable selling and administrative } & 55,000 \\\\\text { Units produced and sold } & 40,000\end{array}$ The manufacturing cost per unit, if the contribution approach is used, is _____.

• A)$13.00
• B)$14.13
• C)$14.75
• D)$15.50

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Definitions:

Assets Distribution

The process of allocating a company's or estate's assets to creditors, shareholders, or heirs according to legal agreements or laws.

Creditors

Individuals or institutions to whom money is owed by debtors or borrowers.

Loan

A sum of money that is borrowed, often from a bank, which is expected to be paid back with interest.

Personal Liability

The legal responsibility of an individual to bear financial costs associated with damages or legal proceedings.