Information from the Records of the Abel Corporation for July

question 162

Multiple Choice

Information from the records of the Abel Corporation for July 2018 was as follows: $\begin{array}{lr}\text { Sales } & \$ 1,230,000 \\\text { Selling and administrative expenses } & 210,000 \\\text { Direct materials used } & 264,000 \\\text { Direct labor } & 300,000 \\\text { Factory overhead * } & 405,000 \\\text { *variable overhead is } \$ 205,000 \text {, fixed overhead is } \$ 200,000 \end{array}$

$\text { Inventories }$
$\begin{array}{lrr}&\text { July 1, } 2018 & \text { July } 31,2018\\\hline\text { Direct materials } & \$ 36,000 & \$ 42,000 \\\text { Work in process } & 75,000 & 84,000 \\\text { Finished goods } & 69,000 & 57,000\end{array}$ The conversion cost is

• A)$960,000
• B)$1,179,000
• C)$705,000
• D)$564,000

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Definitions:

V(X + Y)

The variance of the sum of two random variables, considering both their individual variances and the covariance between them.

V(X)

Represents the variance of a random variable X, quantifying the spread of its distribution.

Advanced Placement

A program in the United States and Canada that offers college-level curriculum and examinations to high school students.

Chi-square Test

A statistical approach intended to determine the existence of an important association between two variables that are categorical.