The Following Data Relate to Lebeaux Corporation for the Year

question 36

Multiple Choice

The following data relate to Lebeaux Corporation for the year just ended:


Which of the following statements is correct?

• A) Lebeaux's variable-costing income statement would show a gross margin of $270,000.
• B) Lebeaux's variable costing income statement would show a contribution margin of $330,000.
• C) Lebeaux's absorption-costing income statement would show a contribution margin of $330,000.
• D) Lebeaux's absorption costing income statement would show a gross margin of $330,000.
• E) Lebeaux's absorption-costing income statement would show a gross margin of $145,000.

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Definitions:

Budgeted Materials

Estimated quantities and costs of materials required for production within a specific time frame.

Raw Materials Inventory

This inventory consists of the basic materials and components that are used in the manufacturing process to produce finished goods.

Budgeted Production

Forecasted amount of products a company plans to produce over a specific period, based on its budget.

Raw Material A

The primary or basic materials that are used in the production of goods, not yet processed or manufactured.