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

question 7

Multiple Choice

(Appendix 6A) Union 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 24,000 units and sold 17,000 units. The company's only product is sold for $232 per unit.
-Assume that the company uses an absorption costing system that assigns $22 of direct labor cost and $68 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is:

• A) $(102,000)
• B) $374,000
• C) $(830,000)
• D) $(256,000)

---

Definitions:

Homeless Population

Individuals or groups of people who lack stable, safe, and adequate housing.

Electroconvulsive Therapy

A psychiatric treatment in which seizures are electrically induced in patients to provide relief from mental disorders.

Schizophrenia

A persistent psychological disorder characterized by a disconnection among thought, feeling, and behavior, resulting in incorrect perceptions, unsuitable emotions and behaviors, detachment from reality towards fantasy and illusion, and feelings of psychic disintegration.

Antipsychotic Medications

Drugs used to treat symptoms of psychosis such as delusions and hallucinations, often associated with schizophrenia and bipolar disorder.