Beach Corporation, Which Produces a Single Product, Budgeted the Following

question 276

Multiple Choice

Beach Corporation, which produces a single product, budgeted the following costs for its first year of operations. These costs are based on a budgeted volume of 30,000 towels produced and sold:
During the first year of operations, Beach Corporation actually produced 30,000 towels but only sold 24,000 towels. Actual costs did not fluctuate from the cost behavior patterns described above. The 24,000 towels were sold for $16 per towel. Assume that direct labor is a variable cost.
-What is the total cost that would be assigned to Beach Corporation's finished goods inventory at the end of the first year of operations under variable costing?

• A) $43,200
• B) $45,600
• C) $55,200
• D) $64,800

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Definitions:

Midbrain

A portion of the brainstem that plays an important role in vision, hearing, motor control, sleep/wake, arousal (alertness), and temperature regulation.

Olfactory Bulbs

Structures located at the base of the brain that process information about odors detected by cells in the nasal cavity.

Longitudinal Fissure

The deep groove that separates the two hemispheres of the brain.

Cerebral Hemispheres

The two halves of the brain, divided by the longitudinal fissure, responsible for controlling opposite sides of the body and different aspects of cognitive function.