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

question 102

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 inventoriable cost per box using absorption costing?

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

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Definitions:

Primary Stakeholders

Individuals or groups with a direct interest or stake in a project or organization, whose input and interests are considered crucial.

Direct Interest

A personal or financial stake in a particular outcome, leading to involvement or intervention in the relevant matter.

Corporate Social Marketing

Support for a behavior changing campaign to improve safety, health, or the environment.

Customer Donations

A process where businesses encourage or facilitate their customers to donate to charitable causes or organizations.