Truman Corporation The Following Information Has Been Extracted from the Financial Records

question 69

Multiple Choice

Truman Corporation
The following information has been extracted from the financial records of Truman Corporation for its first year of operations:

• A)$70,000
• B)$79,000
• C)$30,000
• D)$58,000

Units produced	10,000
Units sold	7,000
Variable costs per unit:
Direct material	$8
Direct labor	9
Manufacturing overhead	3
SG&A	4
Fixed costs:
Manufacturing overhead	$70,000
SG&A	30,000

Refer to Truman Corporation.Based on absorption costing,what amount of period costs will Truman Corporation deduct?

---

Definitions:

Rival Firms

Companies that compete within the same market for customers by offering similar products or services.

Set Prices

Refers to the determination or establishment of the amount at which goods or services will be sold.

Game Theory

A branch of mathematics and economics that studies strategic interactions among rational decision-makers.

Solitaire

A card game played by one person or a metaphor for any activity done alone without the need for other participants.