Figure 7-2
Steele Ltd Production Costs Per Unit (Based on 10,000 Units) Are as February

question 25

Multiple Choice

Figure 7-2
Steele Ltd. has the following information for January, February, and March 2011: $\begin{array}{lccc} & \text { January } & \text { February } & \text { March } \\\text { Units produced } & 10,000 & 10,000 & 10,000 \\\text { Units sold } & 7,000 & 8,500 & 10,500\end{array}$ Production costs per unit (based on 10,000 units) are as follows: $\begin{array}{lr}\text { Direct materials } & £ 12 \\\text { Direct labour } & 8 \\\text { Variable factory overhead } & 6 \\\text { Fixed factory overhead } & 4 \\\text { Variable selling and admin. expenses } & 10 \\\text { Fixed selling and admin. expenses } & 4\end{array}$ There were no beginning inventories for January 2011, and all units were sold for £50. Costs are stable over the three months.
-Refer to Figure 7-2. What is the March ending inventory for Steele Ltd. using the variable costing method?

• A)£120,000
• B)£104,000
• C)£260,000
• D)£15,000

---

Definitions:

Exceed

To go beyond the limits or expectations of something.

Unforeseen Emergency

involves situations or events that could not have been reasonably anticipated and require immediate action to prevent or mitigate harm.

Power of Attorney

is a legal document that grants one person the authority to act on behalf of another person in legal or financial matters.

Express Authority

Legal power granted explicitly to an agent or representative by a principal, allowing them to act on the principal's behalf.