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

question 14

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)$2.50.
• B)$3.00.
• C)$3.50.
• D)$4.50.

	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.In presenting inventory on the balance sheet at December 31,the unit cost under absorption costing is

Understand the types of responsibility centers and their performance evaluation methods.

Familiarize with real-time information systems and their terminologies, including flash reporting.

Understand the concept of flexible and static budgets.

Identify the appropriate activity measure for overhead allocation.

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Definitions:

Bodily Needs

Fundamental physiological requirements critical for the survival and proper functioning of the human body, such as food, water, and sleep.

Tension

A state of mental or emotional strain or stress resulting from adverse or demanding circumstances.

Acquired Drive

A learned or conditioned drive that results from experiences or social influences, rather than innate biological needs.

Getting A Haircut

The act of having one's hair trimmed, styled, or cut by a professional barber or stylist.