Woodhead Inc

question 103

Multiple Choice

Woodhead Inc. manufactures one product. It does not maintain any beginning or ending 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. Its standard cost per unit produced is $37.45. During the year, the company produced and sold 24,400 units at a price of $47.40 per unit and its selling and administrative expenses totaled $92,000. The company does not have any variable manufacturing overhead costs. It recorded the following variances during the year:

-The net operating income for the year is closest to:

• A) $259,859
• B) $184,605
• C) $151,026
• D) $150,780

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Definitions:

Gestalt Psychology

A psychological approach that emphasizes understanding the whole experience rather than breaking it down into parts.

Insight

The sudden realization or understanding of the solution to a problem, often perceived as an "aha" moment.

Scientific Method

An organized way of using experience and testing ideas to expand and refine knowledge.

Correlations

A measure of the relationship between two or more variables, indicating the degree to which they occur together or affect each other.