Zhender Inc Full Costing Operating Income for 2019 Is Calculated to Be

question 42

Multiple Choice

Zhender Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2018 and 2019 was 3,000 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: $\begin{array}{lcc} & 2018 & 2019 \\\text { Units sold } & 2,500 & 3,200 \\\text { Units produced } & 3,000 & 3,000\\\text { Costs: }\\\text { Variable factory overhead per unit } & \$ 0.65 & \$ 0.65 \\\text { Fixed factory overhead } & \$ 1,290 & \$ 1,290 \\\text { Variable marketing per unit } & \$ 0.80 & \$ 0.80 \\\text { Fixed Selling and Administrative } & \$ 650 & \$ 650\end{array}$ Full costing operating income for 2019 is calculated to be:

• A) $850.
• B) $1,150.
• C) $1,295.
• D) $1,654.
• E) $1,740.

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Definitions:

Consumption Expenditures

The total amount spent by households on goods and services for personal use.

Government Expenditures

The total amount spent by the government, including spending on goods, services, and public works, and transfer payments.

GDP Components

The parts that make up Gross Domestic Product, generally categorized as consumption, investment, government spending, and net exports.

GDP

Gross Domestic Product, the total monetary value of all final goods and services produced within a country's borders in a specific time period.