Hahn Corporation Hahn Corporation Produces a Single Product That Sells for $7.00

question 102

Multiple Choice

Hahn Corporation
Hahn Corporation produces a single product that sells for $7.00 per unit.Standard capacity is 100,000 units per year;100,000 units were produced and 80,000 units were sold during the year.Manufacturing costs and selling and administrative expenses are presented below.
There were no variances from the standard variable costs.Any under- or overapplied overhead is written off directly at year-end as an adjustment to cost of goods sold.

• A)$50,000
• B)$80,000
• C)$90,000
• D)$120,000

	Fixed costs	Variable costs
Direct material	$0	$1.50 per unit produced
Direct labor	0	1.00 per unit produced
Manufacturing overhead	$150,000	0.50 per unit produced
Selling & Administration expense	80,000	0.50 per unit sold

Hahn Corporation had no inventory at the beginning of the year.
Refer to Hahn Corporation.What is the net income under variable costing?

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Definitions:

Motor Reflexes

Involuntary movements or actions automatically triggered by specific stimuli, fundamental for survival and development.

Assimilation

The process through which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.

Accommodation

The process of adapting or adjusting to someone or something, often to make coexistence more harmonious.

Incorporating

The process of legally declaring a body as a corporation, thereby enabling it to enjoy legal rights, incur liabilities, and conduct business.