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

question 92

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 operating income (loss) for the month under absorption costing?

• A) ($14,100).
• B) $3,900.
• C) $8,100.
• D) $12,000.

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Definitions:

Ongoing Activity

An action or series of actions that continue over a period of time, without a specific end point, often aimed at maintaining or improving a certain condition or state.

Valid Performance Appraisal

An evaluation process that accurately and reliably measures an employee's job performance and productivity.

Measurement Criteria

Standards or benchmarks used to evaluate or assess the effectiveness, quality, or performance of something.

Reliable Measures

Assessment tools or methods that consistently produce the same results under the same conditions, indicating high reliability.