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

question 42

Multiple Choice

Use the information below to answer the following question(s) .Urban Body Products Ltd.manufactures body wash liquid soap.The controller has provided the following information and stated that standard costing is used for manufacturing, marketing, and administrative costs. There were no beginning or ending inventories of materials or work-in-process.
-What is the per unit manufacturing cost using absorption costing at Urban Body Products Ltd.?

• A)$2.20
• B)$6.20
• C)$7.50
• D)$5.20
• E)$3.20

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Definitions:

Indifferent

A state of having no preference between two or more alternatives, reflected in decision-making and consumer choice theory.

Marginal Rate

The marginal rate typically refers to the rate at which the next dollar of taxable income is taxed.

Substitution

The economic principle that as the price of a good or service increases, consumers are likely to replace it with a cheaper alternative.

Consumer

An individual or group that purchases goods and services for personal use.