Loring Company Had the Following Data for the Month

question 26

Multiple Choice

Loring Company had the following data for the month:
Fixed overhead is $4,000 per month; it is applied to production based on normal activity of 2,000 units. During the month, 2,000 units were produced. Loring started the month with 300 units in beginning inventory, with unit product cost equal to this month's unit product cost. A total of 2,100 units were sold during the month at price of $14. Selling and administrative expense for the month, all fixed, totaled $3,600.
-Refer to Figure 8-2. What is the unit product cost under absorption costing?

• A) $8.60
• B) $10.60
• C) $8.20
• D) $10.20
• E) $7.20

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Definitions:

Exophthalmia

A condition where the eyeballs protrude abnormally, often due to thyroid disease, causing a distinctive bulging of the eyes.

Thyroid Hormone

Hormones produced by the thyroid gland, crucial for regulation of metabolism, energy generation, and the growth and development of the body.

Prostaglandins

A group of physiologically active lipid compounds having diverse hormone-like effects in animals.

Adrenal Cortex

The outer portion of the adrenal gland that produces a variety of hormones including corticosteroids and androgens.