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

question 22

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 net operating income under this costing system is:

• A) $315,000
• B) $1,035,000
• C) $735,000
• D) $691,000

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Definitions:

Fixated

Being obsessively focused on an idea or thing.

Psychosexual Stage

A concept in Freudian psychology that describes the series of stages through which a child's libido develops, focusing on different areas of the body.

Oedipus Complex

A concept in psychoanalytic theory referring to a child's feelings of desire for their opposite-sex parent and jealousy and rivalry with their same-sex parent.

Psychoanalyst

A professional who practices psychoanalysis, a therapeutic technique originally developed by Freud, focusing on unconscious processes.