Use the Following Information for Items

question 28

Multiple Choice

Use the following information for items
Obama Company sells its product for $25 per unit.During 2020, it produced 20,000 units and sold 15,000 units (there was no beginning inventory) .Costs per unit are: direct materials $5, direct labour $4, and variable overhead $3.Fixed costs are: $300,000 manufacturing overhead, and $50,000 selling and administrative expenses.
-The per-unit manufacturing cost under variable costing is

• A)$12.
• B)$27.
• C)$29.50.
• D)$32.

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Definitions:

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by regulatory authorities.

Total Checkable Deposits

represents the sum of all demand deposits and negotiable order of withdrawal (NOW) accounts in the banking system, which are available for immediate withdrawal and payment.

Depository Institutions Deregulation and Monetary Control Act

A United States federal law enacted in 1980 aimed at improving the efficiency of the financial institutions system and enhancing the control of the money supply.

Reserve Requirements

Regulations set by central banks requiring commercial banks to hold a certain percentage of their deposits in reserve as cash in their vaults or as deposits with the central bank.