New Look Company, Which Has Only One Product, Has Provided

question 115

Multiple Choice

New Look Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{|l|r|}\hline \text { Selling price } & \$ 95 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 3,800 \\\hline \text { Units sold } & 3,600 \\\hline \text { Units in ending inventory } & 200 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 22 \\\hline \text { Direct labour } & \$ 11 \\\hline \text { Variable manufacturing overhead } & \$ 2 \\\hline \text { Variable selling and administrative } & \$ 9 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 102,600 \\\hline \text { Fixed selling and administrative } & \$ 63,200 \\\hline\end{array}$



-What was the total gross margin for the month under the absorption costing approach?

• A) $90,000.
• B) $95,200.
• C) $118,800.
• D) $156,400.

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Definitions:

Mental Energy

A concept referring to the power of the mind to think, reason, and engage in purposeful action, often seen as a finite resource that can be depleted.

Id

Refers to a component of the psychoanalytic personality theory developed by Sigmund Freud that is responsible for our innate desires and urges, operating based on the pleasure principle.

Thanatos

In psychoanalytic theory, another term for the drive toward death, destruction, and decay.

Unconscious Desire

Desires and wishes that influence our behavior and feelings without our conscious awareness, often explored in Freudian psychoanalytic theory.