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

---

Definitions:

Hardy Personality

A set of personality traits characterized by resilience, commitment, control, and challenge, thought to reduce stress impact.

Type B

A personality type characterized by a generally laid-back, relaxed, and less competitive attitude towards life, in contrast to the more stressed and aggressive Type A personality.

Type C

A personality style characterized by emotional expression, suppression, and an increased risk of stress-related illnesses.

Immune System

A complex network of cells, tissues, and organs in the body that works to defend against infectious diseases and foreign invaders.