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

question 9

Multiple Choice

(Appendix 6A) Tremble 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 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.
-Assume that the company uses an absorption costing system that assigns $11 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced.The unit product cost under this costing system is:

• A) $94 per unit
• B) $180 per unit
• C) $105 per unit
• D) $210 per unit

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Definitions:

Adaptive Challenge

A problem or obstacle that is complex, unclear, and requires new learning, innovative problem-solving approaches, and often changes in people's priorities, beliefs, habits, and loyalties.

Espoused Values

The declared set of values and norms that an organization claims to follow and which are supposed to guide the behavior of its members.

Downsize

The reduction of a company's workforce to lower expenses, often resulting in layoffs.

Adaptive Challenges

Complex problems that require new learning and innovative solutions, often without clear solutions.