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

question 38

Multiple Choice

Delvin Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{l|r|}\hline \text { Selling price } & \$ 120 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 1,800 \\\hline \text { Units sold } & 1,500 \\\hline \text { Units in ending inventory } & 300 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 42 \\\hline \text { Direct labour } & \$ 42 \\\hline \text { Variable manufacturing overhead } & \$ 2 \\\hline \text { Variable selling and administrative } & \$ 9 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 7,200 \\\hline \text { Fixed selling and administrative } & \$ 28,500 \\\hline\end{array}$

-What was the total period cost for the month under the absorption costing approach?

• A) $7,200.
• B) $28,500.
• C) $42,000.
• D) $49,200.

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Definitions:

Charles Fourier

A French philosopher and social theorist known for his views on cooperative communities and the organization of society based on harmonious principles.

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The period from 1801 to 1900, marked by widespread social, political, and industrial change around the world.

Robert Owen

A Welsh textile manufacturer, philanthropist, and social reformer, best known for his efforts to improve working conditions and the creation of utopian socialist communities.

Pragmatic Socialist

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