Tremble Corporation Manufactures and Sells One Product

question 307

Multiple Choice

Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.Assume that the company uses a variable costing system that assigns $11 of direct labor cost to each unit that is produced. The net operating income under this costing system is:

• A) $1,035,000
• B) $691,000
• C) $315,000
• D) $735,000

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Definitions:

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A quicker or more efficient route or method to achieve a particular end, often bypassing some of the usual steps.

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Decisions that are complex and lack clear parameters, often requiring innovative and subjective approaches to problem-solving.

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