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

question 50

Multiple Choice

Chown Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{l|r|}\hline \text { Selling price } & \$ 110 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 8,000 \\\hline \text { Units sold } & 7,800 \\\hline \text { Units in ending inventory } & 200 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 22 \\\hline \text { Direct labour } & \$ 31 \\\hline \text { Variable manufacturing overhead } & \$ 3 \\\hline \text { Variable selling and administrative } & \$ 4 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 248,000 \\\hline \text { Fixed selling and administrative } & \$ 140,400 \\\hline\end{array}$

-What was the total gross margin for the month under the absorption costing approach?

• A) $7,800.
• B) $179,400.
• C) $196,800.
• D) $390,000.

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Definitions:

Political Behavior

Actions by individuals or groups within an organization that are aimed at influencing the distribution of advantages and disadvantages.

Organizational Politics

The use of power and social networking within an organization to achieve changes that benefit the individual or the organization.

Coercive Power

a form of power that is based on the ability to deliver punishments or impose penalties for noncompliance with expectations or directives.

Reward Power

The capability of an individual to offer positive incentives, such as promotions or bonuses, to influence others’ behaviors or attitudes.