(Appendix 6A) Labadie Corporation Manufactures and Sells One Product

question 30

Multiple Choice

(Appendix 6A) Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit.
-Assume that the company uses a variable costing system that assigns $23 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

• A) $181 per unit
• B) $117 per unit
• C) $94 per unit
• D) $215 per unit

---

Definitions:

Operating Room

A specialized facility within a hospital where surgical operations are carried out in a sterile environment.

Acetaminophen (Tylenol)

A medication used to reduce fever and relieve pain, widely available over-the-counter and considered safer than nonsteroidal anti-inflammatory drugs for most people.

Medical Asepsis

Practices in healthcare designed to reduce the number and spread of pathogens and protect patients from infection, such as hand hygiene and sterilization of instruments.

Antibacterial Soap

Soap that contains chemical agents designed to kill bacteria and other pathogens, aiming to reduce or prevent infection.