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

question 32

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.
-Ramon Company reported the following units of production and sales for June and July 2011: Net income under absorption costing for June was £40,000; net income under variable costing for July was £50,000. Fixed manufacturing costs were £600,000 for each month. How much was net income for June using variable costing?

• A) £40,000
• B) £20,000
• C) £(40,000)
• D) £(20,000)

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Definitions:

Cytokine

Protein or peptide secreted by a cell that regulates the activity of neighboring cells.

Lymphocyte Proliferation

The rapid increase or multiplication of lymphocytes, a type of white blood cell, often in response to infection or disease.

Helper T Cells

A type of T cell that plays a central role in the immune response, helping to activate and direct other immune cells.

Macrophages

Large white blood cells that engulf and digest cellular debris, foreign substances, microbes, and cancer cells in a process called phagocytosis.