Gersbach Corporation Manufactures One Product

question 56

Multiple Choice

Gersbach Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The company has provided the following information:
The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
The net operating income for the year is closest to:

• A) ($2,349)
• B) $85,915
• C) $70,200
• D) $145,368

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Definitions:

Neolithic Social Structure

The organization of societies during the Neolithic period, characterized by the beginnings of agriculture, settled communities, and more complex social hierarchies.

Egalitarian Society

A society in which all members are considered equal, with no inherent class, caste, or rank distinctions.

Specialized Social Roles

Specialized social roles are specific functions or duties assigned to individuals within a society based on factors like skill, knowledge, or tradition, contributing to the society’s overall operation.

Farming Community

A group of people who live in the same area and engage primarily in agricultural activities for livelihood.