A Company Has the Following Information for Its First Month

question 9

Multiple Choice

A company has the following information for its first month of operations: $\begin{array}{ll}\text { Raw materials used } & \$ 25,000 \\\text { Sales ( } \$ 65 \text { per unit) } & \$ 78,000 \\\text { Direct labor } & \$ 42,000 \\\text { Variable factoryoverhead } & \$ 17,000 \\\text { Fixed } &\\factory\\overhead&\text { unknown }unknown\\Variable\\sellingand\\administrative&\$3,000\\\text { Fixed sellingand administrative } & \$ 5,000 \\\text { Grossprofit } & \$ 30,000 \\\text { Contributiormargin } & \text { unknown }\\\text { Ending inventories: }\\\text { Raw materials } & \$ 7,000 \\\text { WIP } & \text { none } \\\text { Finished goods } & 1,200 \text { units }\end{array}$ were sold during the period.

• A) 1,200 units
• B) 2,400 units
• C) 0 units
• D) 3.600 units

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Definitions:

Comparable Worth

The concept that jobs requiring comparable skills, effort, responsibility, and working conditions should be paid equally.

Minimum Wage

The lowest remuneration that employers can legally pay their workers, established by government law.

Hazardous Occupations

Jobs or professions that involve a high risk of physical injury or health hazards to the employees performing them.

Worker Retention

The ability of an organization to retain its employees and reduce turnover by creating a positive work environment and offering competitive benefits.