Figure 7-2 Steele Ltd. Has the Following Information for January, February, and February

question 45

Multiple Choice

Figure 7-2
Steele Ltd. has the following information for January, February, and March 2011: Production costs per unit (based on 10,000 units) are as follows: There were no beginning inventories for January 2011, and all units were sold for £50. Costs are stable over the three months.
-Toshi Company incurred the following costs in manufacturing desk calculators: During the period, the company produced and sold 1,000 units. What is the inventory cost per unit using variable costing?

• A) £52
• B) £62
• C) £42
• D) £70

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Definitions:

Population Variances

Measures the degree to which each number in a set differs from the mean of the population, calculated as the average of the squared differences from the Mean.

Normal Populations

Populations that exhibit characteristics of normal distribution, where data points tend to cluster around a central mean value.

Degrees Of Freedom

Degrees of freedom represent the number of independent values or quantities which can freely vary in an analysis without violating any constraints imposed on them.

Pooled Variance

A method used to estimate the variance of two or more populations when the mean of each population may differ but the true variance is assumed to be the same.