Pact Company Had Net Income of $972,000 Based on Variable

question 59

Multiple Choice

Pact Company had net income of $972,000 based on variable costing.Beginning and ending inventories were 7,800 units and 5,200 units,respectively.Assume the fixed overhead per unit was $3.61 for both the beginning and ending inventory.What is net income under absorption costing?

• A)$962,614
• B)$1,018,923
• C)$925,077
• D)$969,400
• E)$981,379

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Definitions:

Dendrite

The branch-like extensions of a neuron that receive signals from other neurons.

Motor Neurons

Nerve cells forming part of a pathway along which impulses pass from the brain or spinal cord to a muscle or gland.

Absolute Refractory Period

A time interval after an action potential during which another action potential cannot be initiated, regardless of the strength of the stimulus.

Millivolts

A unit of electric potential equal to one thousandth of a volt, commonly used in measuring the strength of electrical signals.