Use the Following Information for Items

question 33

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 absorption costing is

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

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Definitions:

Discriminating Firms

Companies that differentiate in their treatment or pricing of customers or employees, based on specific attributes or behaviors.

Statistical Discrimination

Decision-making based on statistical generalizations rather than individual merit, often resulting in unfair treatment of certain groups.

Monopsony Exploitation

A market situation where there is only one buyer for many sellers, leading to lower prices for sellers and potential exploitation.

Foreign Medical School

An institution located outside one's home country offering education and training in the medical field, preparing individuals to practice medicine.