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

question 89

Multiple Choice

Aaker Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array} { | l | r | } \hline \text { Selling price } & \$ 99 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 6,300 \\\hline \text { Units sold } & 6,000 \\\hline \text { Units in ending inventory } & 300 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 12 \\\hline \text { Direct labour } & \$ 42 \\\hline \text { Variable manufacturing overhead } & \$ 6 \\\hline \text { Variable selling and administrative } & \$ 6 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 170,100 \\\hline \text { Fixed selling and administrative } & \$ 24,000 \\\hline\end{array}$



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

• A) $60.
• B) $66.
• C) $87.
• D) $93.

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Definitions:

Functional Need

The basic or essential requirement that consumers seek to fulfill with a product or service, often related to its practical or utilitarian aspect.

High-Involvement

Pertains to purchase decisions that carry a higher risk and require more thought and information gathering by consumers due to their significance.

Deeper Processing

A method of learning or memorization that involves meaningful analysis of information, leading to stronger recall.

Cognitive

Relates to the processes of the mind involved in learning, thinking, reasoning, and understanding.