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

question 124

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 absorption costing?

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

---

Definitions:

Realistic Goals

Objectives that are achievable and relevant, taking into account current resources, limitations, and conditions.

Early Success

Achieving significant positive outcomes or milestones at an initial or early stage in a process or endeavor.

Cross-functional Teams

Teams composed of members from different departments or areas within an organization, working together on a common project or goal.

Communication Barriers

Obstacles that hinder the transfer and understanding of information between individuals or groups.