Farron Company, Which Has Only One Product, Has Provided the Following

question 121

Multiple Choice

Farron Company, which has only one product, has provided the following data concerning its most recent month of operations: $\begin{array}{|l|r|}\hline \text { Selling price } & \$ 92 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 8,700 \\\hline \text { Units sold } & 8,300 \\\hline \text { Units in ending inventory } & 400 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 13 \\\hline \text { Direct labour } & \$ 55 \\\hline \text { Variable manufacturing overhead } & \$ 1 \\\hline \text { Variable selling and administrative } & \$ 5 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 130,500 \\\hline \text { Fixed selling and administrative } & \$ 8,300 \\\hline\end{array}$
-What was the unit product cost for the month under variable costing?

• A) $69.
• B) $74.
• C) $84.
• D) $89.

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Definitions:

Nonfinancial Information

Data regarding a company's operations, strategies, risks, and opportunities that is not quantifiable in monetary terms.

Alternative Courses

Different options or paths that can be taken in decision-making situations, often evaluated for potential outcomes.

Unprofitable Product Line

A series of related products that do not generate expected profits, often identified through financial analysis for potential discontinuation.

Total Variable Costs

The sum of all costs that vary with production output, including materials and labor.