Futon Delight Experienced the Following Costs in 2017 (Assume the Same

question 78

Multiple Choice

Futon Delight experienced the following costs in 2017 (Assume the same unit costs in all years) : $\begin{array}{ll}\text { Direct materials } & \$ 2.00 \text { per unit } \\\text { Direct labor } & \$ 1.00 \text { per unit }\\\text { Manufacturing Overhead Costs: }\\\text { Variable } &\$ 1.50 \text { per unit }\\\text { Fixed }&\$45,000\end{array}$ There were 600 units in beginning inventory.During the year, the company manufactured 18,000 units and sold 17,600 units.If net income for the year was $54,000 using full costing, how much will net income be if the company uses variable costing?

• A)$53,000
• B)$50,000
• C)$55,000
• D)More information is needed to determine the answer.

Interpret and analyze financial tables related to bank accounts and loans.

Calculate future value of investments using different interest rates and time periods.

Explain the concept of present value and how it is affected by interest rates and time.

Apply the time-value of money principle to financial decision-making.

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Definitions:

Raw Score

The original, unmodified score obtained by an individual on a test or assessment.

Hypothesized Population Mean

The expected mean value of a population, proposed prior to conducting a study.

Standard Deviation

A numerical value indicating the spread of data points around the mean of the dataset.

Less Than

Less than is a mathematical term used to indicate that one quantity is smaller than another, often symbolized by "<".