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:

Cephalocaudal Development

A pattern of growth in humans where development proceeds from the head downward through the body and towards the feet.

Heredity

The biological process through which traits and characteristics are passed down from parents to offspring.

Culture

The shared attitudes, values, norms, practices, languages, and material objects of a society that are passed from one generation to the next.

Cephalocaudal Development

A pattern of growth where infants develop motor skills from their head down through the body to the feet.