Stubenrauch Corporation Manufactures and Sells One Product

question 163

Multiple Choice

Stubenrauch 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 38,000 units and sold 32,000 units. The company's only product is sold for $240 per unit.Assume that the company uses a variable costing system that assigns $14 of direct labor cost to each unit that is produced. The net operating income under this costing system is:

• A) $282,000
• B) $912,000
• C) $1,248,000
• D) $828,000

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Definitions:

Free Association

Technique in psychoanalysis in which the patient says whatever comes to mind at the moment.

Rational Emotive Therapy

A form of psychotherapy that identifies irrational beliefs, challenges them, and encourages the development of more rational and adaptive thoughts and behaviors.

Cognitive Therapy

Form of psychotherapy that focuses on how a person’s thoughts lead to feelings of distress, with the aim of helping them change these irrational thoughts.

Transference

Process in psychoanalysis in which the patient transfers all of the positive or negative emotions associated with the patient’s other relationships to the psychoanalyst.