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

question 38

Multiple Choice

(Appendix 6A) Stubenrauch 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 38,000 units and sold 32,000 units. The company's only product is sold for $240 per unit.
-Assume that the company uses a variable costing system that assigns $14 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

• A) $282,000
• B) $912,000
• C) $1,248,000
• D) $828,000

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Definitions:

Extra Chromosome

A condition in which an individual has more than the usual number of chromosomes, which can lead to developmental abnormalities or genetic disorders.

Down Syndrome

Down Syndrome is a genetic disorder caused by the presence of an extra 21st chromosome, characterized by physical growth delays, characteristic facial features, and varying degrees of intellectual disability.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA, carrying genetic information.

Rod-Shaped Structures

Cellular components or biological entities that are elongated and cylindrical, often referring to certain types of bacteria or subcellular structures.