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

question 12

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 total period cost for the month under the variable costing approach?

• A) $60,000.
• B) $170,000.
• C) $194,100.
• D) $230,100.

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Definitions:

Derived Demand

The demand for a resource that depends on the demand for the products it helps to produce.

Distribution Of Income

The way in which total income is shared among different individuals or groups in an economy.

Market System

Here, economic decisions about where to invest, what and how much to produce, and how to distribute goods are made based on supply and demand curves, with pricing for these goods and services being freely adjusted in a market-based pricing structure.

Economic Questions

Fundamental queries regarding what to produce, how to produce, and for whom to produce, which economies must address.