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

question 111

Multiple Choice

Hatfield Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array} { | l | r | } \hline \text { Selling price } & \$ 123 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 6,400 \\\hline \text { Units in ending inventory } & 300 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 45 \\\hline \text { Direct labour } & \$ 30 \\\hline \text { Variable manufacturing overhead } & \$ 1 \\\hline \text { Variable selling and administrative } & \$ 8 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 140,800\\ \hline \text { Fixed selling and administrative } & \$ 91,500 \\\hline\end{array}$

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

• A) $76.
• B) $84.
• C) $98.
• D) $106.

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Definitions:

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A process in which individuals, organizations, or countries focus on producing a limited range of goods or services, aiming to increase efficiency and expertise.

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The method of merging different materials and non-material elements (such as designs and expertise) to create products for use.

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