Aaker Company, Which Has Only One Product, Has Provided the Following

question 89

Multiple Choice

Aaker Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array} { | l | r | } \hline \text { Selling price } & \$ 99 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 6,300 \\\hline \text { Units sold } & 6,000 \\\hline \text { Units in ending inventory } & 300 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 12 \\\hline \text { Direct labour } & \$ 42 \\\hline \text { Variable manufacturing overhead } & \$ 6 \\\hline \text { Variable selling and administrative } & \$ 6 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 170,100 \\\hline \text { Fixed selling and administrative } & \$ 24,000 \\\hline\end{array}$



-What is the unit product cost for the month under variable costing?

• A) $60.
• B) $66.
• C) $87.
• D) $93.

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Definitions:

Global Operations

The activities involved in running a business on an international scale, dealing with production, logistics, and management across different countries.

Network Structure

A framework that maps out the connections and relationships within a network, highlighting how entities are organized and interact with each other.

Functional Structure

A method of organizing a company where activities are grouped based on their function, leading to departments like marketing, finance, and HR.

Cross-functional Teams

Groups composed of members from different departments or areas of expertise working together towards a common goal.