Kasawaki Company Incurred the Following Costs in Manufacturing Digital Cameras

question 117

Multiple Choice

Kasawaki Company incurred the following costs in manufacturing digital cameras: $\begin{array}{lr}\text { Direct materials } & \$ 14 \\\text { Indirect materials (variable) } & 4 \\\text { Direct labor } & 8 \\\text { Indirect labor (variable) } & 6 \\\text { Other variable factory overhead } & 10 \\\text { Fixed factory overhead } & 28 \\\text { Variable selling expenses } & 20 \\\text { Fixed selling expenses } & 14\end{array}$
During the period, the company produced and sold 1,000 units.
What is the inventory cost per unit using absorption costing?

• A)$104
• B)$70
• C)$84
• D)$32

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Definitions:

Optimal Level

Pertains to the most favorable or advantageous level or stage of a process, activity, or variable.

Drive Reduction

A theory in psychology suggesting that motivation arises from the desire to reduce internal tension caused by unmet biological needs, such as hunger or thirst.

Social Motive

Refers to the underlying reasons that drive individuals to engage in various social behaviors.

Hunger

A physical sensation caused by the body's need for nutrients, leading to the desire to eat.