Cornell Products
Cornell Products Has the Following Cost Information Available

question 36

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 variable costing?

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

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Definitions:

Signal Detection Task

A psychological experiment that measures the ability to differentiate between information-bearing patterns and random patterns that distract from the information.

False Alarm

An event in which a warning or alert is given, but the anticipated threat or danger does not actually occur.

Signal Detection Task

A psychological test that measures the ability to differentiate between information-bearing patterns (signals) and random patterns that distract from the information (noise).

Hit

In the context of data or searches, a hit refers to a successful match or retrieval of information that corresponds to a specific query.