A Company Has the Following Information for Its First Month

question 92

Multiple Choice

A company has the following information for its first month of operations: $\begin{array}{lr}\text { Raw materials used } & \$ 37,500 \\\text { Sales ( } \$ 97.50 \text { per unit) } & \$ 117,000 \\\text { Direct labor } & \$ 63,000 \\\text { Variable factory overhead } & \$ 25,500 \\\text { Fixed factory overhead } & \text { unknown }\\\text { Variable selling and administrative }&\$4,500\\\text { Fixed selling and administrative }&\$7,500\\\text { Gross profit }&\$45,000\\\text { Contribution margin }& \text { unknown }\\\end{array}$ The company sold half of the 2,400 units it produced. of factory overhead is included in the ending inventory under absorption costing.

• A) $12,600
• B) $- 0-
• C) $18,000
• D) $9,000

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Definitions:

Paving

The process of covering a surface or area with pavement, typically using materials like asphalt or concrete, to create a hard, durable surface for vehicles or foot traffic.

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The process of tearing down or destroying an outdated or dilapidated building, often to clear the site for new construction or uses.

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The process of building or assembling infrastructure, buildings, or other substantial physical structures.