Mccreary Corporation Manufactures One Product

question 124

Multiple Choice

Mccreary Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standard cost of the company's product is $28.00per unit.During the year the company sold 27,500 units at $36.30 per unit.The actual selling and administrative expenses were $121,000 for the year.The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year: The net operating income for the year is closest to:

• A)$107,250
• B)$55,272
• C)$118,446
• D)$79,816

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Definitions:

Rib Cage

The set of bones surrounding the chest that protects vital organs such as the heart and lungs.

Triangular-Shaped

Having the shape of a triangle, characterized by three sides and three angles.

Fused Vertebrae

Vertebrae that have grown together or have been surgically joined to increase spinal stability.

Back

The rear part of the human body, extending from the neck to the lower end of the spine.