Shore Company Reports the Following Information Regarding Its Production Cost

question 4

Multiple Choice

Shore Company reports the following information regarding its production cost: $\begin{array}{ll}\text { Units produced } & 28,000 \text { units } \\\text { Direct labor } & \$ 23 \text { per unit } \\\text { Direct materials } & \$ 24 \text { per unit } \\\text { Variable overhead } & \$ 280,000 \text { per unit } \\\text { Fixed overhead } & \$ 94,920 \text { in total }\end{array}$ Compute production cost per unit under variable costing.

• A)$57.00
• B)$60.39
• C)$47.00
• D)$23.00
• E)$24.00

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Definitions:

Denominator

The bottom number in a fraction that shows into how many equal parts the whole is divided.

Point Estimate

A single value derived from sample data that serves as the best guess or estimation of an unknown population parameter.

Confidence Interval

A spectrum of figures, coming from sample data, predicted to hold the value of a hidden population characteristic.

Sampling Error

The error that occurs due to observing a sample instead of the whole population, which may cause sample statistics to differ from the actual population parameters.