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

question 66

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 period cost for the month under the absorption costing approach?

• A) $61,200.
• B) $88,400.
• C) $95,600.
• D) $182,000

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Definitions:

Zinc

A chemical element with the symbol Zn and atomic number 30; it is a slightly brittle metal at room temperature and has a variety of uses, from galvanization to dietary supplements.

Isotope

An isotope is a variant of a particular chemical element, which differs in neutron number, while retaining the same number of protons.

Neutrons

Subatomic particles found in the nucleus of an atom, having no electrical charge and a mass slightly greater than that of a proton.

Element

A pure chemical substance consisting of one type of atom, distinguished by its atomic number, which is the number of protons in its nucleus.