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

question 52

Multiple Choice

Bateman Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{|l|r|}\hline \text { Selling price } & \$ 117 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 4,700 \\\hline \text { Units sold } & 4,400 \\\hline \text { Units in ending inventory } & 300 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 36 \\\hline \text { Direct labour } & \$ 38 \\\hline \text { Variable manufacturing overhead } & \$ 4 \\\hline \text { Variable selling and administrative } & \$ 11 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 89,300 \\\hline \text { Fixed selling and administrative } & \$ 26,400 \\\hline\end{array}$

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

• A) $78.
• B) $89.
• C) $97.
• D) $108.

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Definitions:

Speculators

Investors who attempt to profit from market volatility by buying and selling stocks or other financial instruments, often taking higher risks.

Hedgers

Individuals or entities that enter financial contracts to reduce exposure to risk, typically by locking in prices for commodities or currencies.

Positions

Refers to the holdings or inventory of investments or trading assets owned by institutions or individuals.

Open Interest

The total number of outstanding derivative contracts, such as options or futures, that have not been settled.