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

question 80

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.
-Absorption costing is also known as

• A)direct costing.
• B)full absorption costing.
• C)non-traditional costing.
• D)manufacturing costing.
• E)variable costing.

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Definitions:

Automobile Insurance

A contract between an individual and an insurance company to cover financial loss related to car incidents, such as accidents, theft, or damage.

Personal Property

Items that are movable and not permanently fixed to one location, such as furniture, electronics, and vehicles.

Valued Policy

An insurance policy that pays a predetermined amount to the insured in the event of a total loss, regardless of the value of the lost property.

Fair Market Value

The price that property would sell for on the open market between a willing buyer and a willing seller.