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:

Protectionism

A call for tariffs and favorable treatments to protect domestic firms from foreign competition.

Foreign Competition

The presence of companies from different countries competing in a market, often emphasizing the global nature of business.

European Union

The European Union is a political and economic union of member states that are located primarily in Europe, aiming to promote peace, stability, and economic cooperation among its members.

Cross-border Trade

Involves the exchange of goods or services between entities in different countries, navigating various regulations and market conditions.