The Following Data Were Provided by Green Enterprises for the Most

question 56

Multiple Choice

The following data were provided by Green Enterprises for the most recent period:
$\begin{array} { | l | r | } \hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 8,000 \\\hline \text { Units sold } & 6,000 \\\hline \text { Variable costs per unit: } & \\\hline \text { Manufacturing } & \$ 15 \\ \hline \text { Selling and administrative } &\$ 5 \\\hline \text { Fixed costs in total } & \\\hline \text { Manufacturing } & \$ 24,000\\\hline \text { Selling and administrative } & \$ 16,000\\\hline\end{array}$

-What was the unit product cost under absorption costing?

• A) $15.
• B) $18.
• C) $20.
• D) $25.

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Definitions:

Squared Deviations

The squares of the differences between individual observations and the mean of those observations, used in variance and standard deviation calculations.

Cost Line

A graph representation showing the relationship between the cost incurred by a company and the level of activity or volume of production.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate representation of product costs.

Direct Materials

Raw materials that are directly consumed in the manufacturing process of a product and are easily identifiable in the final product.