Use the Information Below to Answer the Following Question(s)

question 28

Multiple Choice

Use the information below to answer the following question(s) .Honda Heaven produces and sells an auto part for $20.00 per unit.Direct materials are $8 per unit, while direct manufacturing labour averages $1.50 per unit.Variable manufacturing overhead is $0.50 per unit and fixed manufacturing overhead is $250,000 per year.Administrative expenses, all fixed, run $90,000 per year, with sales commissions of $2 per part.Production is 100,000 parts per year.And this year, 75,000 boxes were sold.
-What is Honda Heaven's inventory cost per box using variable costing?

• A)$9.50
• B)$10.00
• C)$12.50
• D)$13.40
• E)$15.40

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Definitions:

Proportion

A part, share, or number considered in comparative relation to a whole.

Proportion

Refers to the ratio of a part or portion of the total count, quantity, or amount in a given context.

Freshmen

Students in their first year of study at a high school or university.

Standard Error

A statistical measure that shows the precision of a sample's mean estimate of a population mean.