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

question 10

Multiple Choice

(Appendix 6A) Leheny 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 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit.
-Assume that the company uses a variable costing system that assigns $21 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

• A) $1,400,000
• B) $1,005,000
• C) $1,110,000
• D) $580,000

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Definitions:

Business-oriented

An approach or mindset focused on achieving business objectives, often emphasizing efficiency, profitability, and market competitiveness.

Professional Profiles

Summaries or overviews of an individual's professional qualifications, achievements, and experiences, often featured on social media or networking platforms.

Capacity

The ability, power, or competence to undertake something or the maximum amount something can contain.

Repudiated

Refused to accept or be associated with; rejected or denied the validity or authority of something.