(Appendix 2B) Coble Woodworking Corporation Produces Fine Cabinets

question 32

Multiple Choice

(Appendix 2B) Coble Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated shaper. Additional information is provided below for the most recent month:

-The gross margin that would be reported on the income statement prepared for internal management purposes would be closest to:

• A) $19,043
• B) $16,593
• C) $10,943
• D) $79,268

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Definitions:

Serial Position Effect

The cognitive bias that results in better recall of items at the beginning and end of a list than those in the middle.

Retroactive Interference

A cognitive phenomenon in which newer memories interfere with the recall of older memories.

Recency Effect

The psychological phenomenon where the most recently presented items or experiences are more likely to be remembered than those presented earlier.

State-dependent Memory

The occurrence where data acquired while in a specific emotional condition (for example, joy or sorrow) is more readily remembered when one is again in that emotional state.