Carter Reported $106,000 of Income for the Year by Using

question 61

Multiple Choice

Carter reported $106,000 of income for the year by using variable costing. The company had no beginning inventory, planned and actual production of 50,000 units, and sales of 47,000 units. Standard variable manufacturing costs were $15 per unit, and total budgeted fixed manufacturing overhead was $150,000. If there were no variances, income under absorption costing would be:

• A) $52,000.
• B) $97,000.
• C) $106,000.
• D) $115,000.
• E) $160,000.

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Definitions:

Ascending Neural Pathway

The neural paths by which sensory information from the peripheral nervous system is sent to the central nervous system.

Perceptual Ambiguity

A situation in which a visual stimulus lacks a clear interpretation due to conflicting perceptions or because it can be seen in more than one way.

Pointillism

An art technique where small, distinct dots of color are applied in patterns to form an image, associated with post-Impressionist painters.

Cubism

An early 20th-century art movement marked by the use of geometric shapes and a viewpoint that represents subjects from multiple perspectives.