A Company Reports the Following Information for Its First Year

question 87

Multiple Choice

A company reports the following information for its first year of operations: $\begin{array}{ll}\text { Units produced this year } & ? \text { units } \\\text { Units sold this year } & 1,500 \text { units } \\\text { Direct materials } & \$ 9 \text { per unit } \\\text { Direct labor } & \$ 5 \text { per unit } \\\text { Variable overhead } & \$ 7 \text { per unit } \\\text { Fixed overhead } & \$ 24,000 \text { in total }\end{array}$ If the company's cost per unit of finished goods using absorption costing is $27, how many units were produced?

• A)4,000 units.
• B)3,600 units.
• C)1,846 units.
• D)2,667 units.
• E)2,000 units.

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Definitions:

Scientists

Individuals who conduct systematic research to increase knowledge and understanding, often specializing in fields within natural or social sciences.

Fossil Record

The totality of fossilized artifacts and their placement within the earth's rock strata, providing evidence about the history of life and past environments on Earth.

Bias

A tendency to lean in a certain direction, either in favor of or against a particular thing, person, or group, often in a way considered to be unfair.

Scientists

Professionals who conduct research and experiments to discover new knowledge and develop technologies.