Hoover Company Reported the Following Information About the Production and Sales

question 149

Multiple Choice

Hoover Company reported the following information about the production and sales of its only product during its first month of operations: $$\begin{array} { l r } \text { Sales ( } \$ 225 \text { per unit) } & \$ 315,000 \\\text { Direct materials used } & \$ 160,000 \\\text { Direct labor } & \$ 100,000 \\\text { Variable factory overhead } & \$ 60,000 \\\text { Fixed factory overhead } & \$ 80,000 \\\text { Variable selling and administrative expenses } & \$ 20,000 \\\text { Fixed selling and administrative expenses } & \$ 30,000 \\\text { Endinginventories: } & \\\quad \text { Direct materials } & - 0 - \\\text { WIP } & - 0 - \\\text { Finished goods } & 600 \text { units }\end{array}$$ The cost of producing one unit of product using absorption costing is:

• A) $200.00
• B) $225.00
• C) $130.00
• D) $160.00

---

Definitions:

Thrombectomy

A medical procedure to remove a blood clot (thrombus) from a blood vessel.

Erythropoietin

A hormone produced primarily by the kidneys that stimulates the production of red blood cells in the bone marrow.

Agglutination

The clumping of particles or cells, such as bacteria or red blood cells, in response to antibodies or other substances.

Immunoglobulin

A group of proteins known as antibodies produced by the immune system to fight against pathogens and foreign substances.