Farron Company, Which Has Only One Product, Has Provided the Following

question 104

Multiple Choice

Farron Company, which has only one product, has provided the following data concerning its most recent month of operations: $\begin{array}{|l|r|}\hline \text { Selling price } & \$ 92 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 8,700 \\\hline \text { Units sold } & 8,300 \\\hline \text { Units in ending inventory } & 400 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 13 \\\hline \text { Direct labour } & \$ 55 \\\hline \text { Variable manufacturing overhead } & \$ 1 \\\hline \text { Variable selling and administrative } & \$ 5 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 130,500 \\\hline \text { Fixed selling and administrative } & \$ 8,300 \\\hline\end{array}$
-What was the operating income (loss) for the month under variable costing?

• A) ($17,000).
• B) $6,000.
• C) $10,600.
• D) $16,600.

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Definitions:

Unethical Behaviors

Actions or practices that violate moral principles or standards within a profession, organization, or society.

Leadership Level

The different tiers or stages of leadership within an organization, typically characterized by varying responsibilities, skills, and influence.

Layoffs

The act of terminating employees, often for reasons unrelated to personal performance, such as economic downturns or company restructuring.

Ethical

Pertaining to or dealing with morals or the principles of morality; adhering to accepted standards of conduct.