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

question 28

Multiple Choice

Jarvix Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{l|r|}\hline \text { Selling price } & \$ 111 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 8,800 \\\hline \text { Units sold } & 8,900 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 34 \\\hline \text { Direct labour } & \$ 37 \\\hline \text { Variable manufacturing overhead } & \$ 3 \\\hline \text { Variable selling and administrative } & \$ 9 \\\hline \text { Fixed costs: } &\\\hline \text { Fixed manufacturing overhead } & \$ 61,600 \\\hline \text { Fixed selling and administrative } & \$ 169,100 \\\hline\end{array}$ The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.


-What was the unit product cost for the month under variable costing?

• A) $74.
• B) $81.
• C) $83.
• D) $90.

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Definitions:

Analytic Thought

A cognitive process that involves breaking down complex information or concepts into smaller, more manageable parts for examination and evaluation.

Logical Thinking

The process of using a rational, systematic series of steps to come to conclusions.

Thinking Intuitively

The process of making judgments and solving problems based on instincts and feelings rather than explicit reasoning or analysis.

Comforting Prejudices

Prejudiced beliefs that provide comfort by reinforcing existing opinions or societal norms.