A Company Has the Following Information for Its First Month

question 117

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 The ending inventory under variable costing is:

• A) $84,000
• B) $48,000
• C) $96,000
• D) $42,000

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Definitions:

Maslow's Theory

An explanation of motivation that suggests individuals are propelled to satisfy a progression of needs starting from the most basic physiological necessities up to higher levels of psychological fulfillment.

Physiological Needs

The most basic human needs including food, water, warmth, and rest, which are foundational for survival, as identified in Maslow's hierarchy of needs.

Self-actualization Needs

The highest level in Maslow's hierarchy of needs, characterized by the realization of a person's potential, self-fulfillment, seeking personal growth, and peak experiences.

Job Analyst

A professional who specializes in collecting and analyzing job information to prepare job descriptions, requirements, and evaluations for organizational use.