Catherman Corporation Manufactures One Product

question 257

Multiple Choice

Catherman Corporation manufactures one product. It does not maintain any beginning or ending 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.During the year, the company produced and sold 32,400 units at a price of $42.30 per unit. Its standard cost per unit produced is $36.90 and its selling and administrative expenses totaled $102,000. 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) $107,269
• B) $6,150
• C) $89,348
• D) $72,960

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Definitions:

Social Deprivation

A condition resulting from a lack of social contact, interaction, and relationships with others, which can lead to negative psychological and emotional effects.

Optimal Distinctiveness Theory

A theory suggesting individuals strive to balance their need for inclusion within groups with their need to feel uniquely recognized as individuals.

Individuality

The unique set of characteristics, traits, and behaviors that distinguishes one person from another.

Connectedness

The state or condition of being related, linked, or associated with others, contributing to a sense of belonging and community.