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

question 141

Multiple Choice

Chown Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{l|r|}\hline \text { Selling price } & \$ 110 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 8,000 \\\hline \text { Units sold } & 7,800 \\\hline \text { Units in ending inventory } & 200 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 22 \\\hline \text { Direct labour } & \$ 31 \\\hline \text { Variable manufacturing overhead } & \$ 3 \\\hline \text { Variable selling and administrative } & \$ 4 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 248,000 \\\hline \text { Fixed selling and administrative } & \$ 140,400 \\\hline\end{array}$

-What was the total contribution margin for the month under the variable costing approach?

• A) $142,000.
• B) $179,400.
• C) $390,000.
• D) $421,200.

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Definitions:

Testes

The male reproductive organs that produce sperm and hormones, primarily testosterone.

Vesicular Follicle

A mature ovarian follicle that contains a fully grown ovum, or egg cell, surrounded by a fluid-filled cavity.

Ovarian Cycle

Monthly changes occurring in the ovary that determine the level of sex hormones in the blood.

Labia Minora

The smaller inner folds of the vulva in the female genitalia.