A Company Has the Following Information for Its First Month

question 58

Multiple Choice

A company has the following information for its first month of operations: $\begin{array}{ll}\hline \text { Raw materials used } & \$ 25,000 \\\text { Sales (\$65 per unit) } & \$ 78,000 \\\text { Directlabor } & \$ 42,000\\\text { Variable factory overhead }&\$17,000\\\text { Fixed factory overhead unknown }\\\text { Variable sellingand administrative }&\$3,000\\\text { Fixed sellingand administrative }&\$5,000\\\text { Gross profit }&\$30,000\\\text { Contributionmargin }&\text { unknown }\\\end{array}$
Ending inventories:
Raw materials $\quad$$\$ 7,000$
WIP none
Finishedgoods $\quad$$\quad$$\quad$ 1,200units Raw materials purchased during the current period are:

• A) $18,000
• B) $25,000
• C) $32,000
• D) None of these answers is correct.

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Definitions:

Sherif

Refers to Muzafer Sherif, a social psychologist known for his work on group norms, social judgment, and the famous Robbers Cave Experiment illustrating intergroup conflict and cooperation.

Development of Norms

Refers to the process by which new standards, behaviors, and conventions emerge and are adopted within a group or society.

Role Conflict

A situation where an individual faces competing demands or expectations from different roles they occupy.

College Students

Individuals enrolled in an institution of higher education, typically pursuing undergraduate degrees.