Gersbach Corporation Manufactures One Product

question 232

Multiple Choice

Gersbach Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. The company has provided the following information: The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
The net operating income for the year is closest to:

• A) ($2,349)
• B) $85,915
• C) $70,200
• D) $145,368

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Definitions:

External Locus

A belief that one's achievements and outcomes are the result of external factors and forces beyond personal control.

Perceived Control

An individual's belief in their capacity to influence and control events in their life.

Biofeedback

A technique that teaches individuals to improve their health and performance by controlling bodily processes that are normally involuntary, through the use of electronic monitoring.

High Blood Sugar

A condition where there is an excessive amount of glucose in the bloodstream, often associated with diabetes.