Cornell Products
Cornell Products Has the Following Cost Information Available

question 77

Multiple Choice

Cornell Products
Cornell Products has the following cost information available for 2009:
$$\begin{array} { l r } \text { Direct materials } & \$ 1.00 \text { per unit } \\\text { Direct labour } & \$ 2.00 \text { per unit } \\\text { Variable manufacturing overhead } & \$ 1.50 \text { per unit } \\\text { Variable selling and administrative costs } & \$ 50 \text { per unit } \\\text { Fixed manufacturing overhead } & \$ 30000 \\\text { Fixed selling and administrative costs } & \$ 25000\end{array}$$
During 2009, Cornell produced 6000 units out of which 5400 units were sold for $20 each.
-What is net income under absorption costing?

• A) $23 000
• B) $29 000
• C) $26 000
• D) $35 000

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Definitions:

Franklin Roosevelt

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Josef Stalin

The leader of the Soviet Union from the mid-1920s until his death in 1953, known for his totalitarian government and significant role in world events like World War II.

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Regulations or policies that set a maximum limit on the amount of money that an employee can earn within a specific period.