Sea Company Reports the Following Information Regarding Its Production Cost

question 90

Multiple Choice

Sea Company reports the following information regarding its production cost: $\begin{array}{ll}\text { Units produced } & 42,000 \text { units } \\\text { Direct labor } & \$ 35 \text { per unit } \\\text { Direct materials } & \$ 28 \text { per unit } \\\text { Variable overhead } & \$ 17 \text { per unit } \\\text { Fixed overhead } & \$ 105,000 \text { in total }\end{array}$ Compute production cost per unit under absorption costing.

• A)$28.00
• B)$82.50
• C)$80.00
• D)$63.00
• E)$35.00

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Definitions:

Beak Sizes

Variations in the length, width, and shape of the beaks of birds, often correlating with their feeding habits and ecological niches.

Indicator Species

Organisms used to assess the health of an ecosystem because their presence, absence, or abundance reflects a specific environmental condition.

Environmental Degradation

The deterioration of the environment through depletion of resources, destruction of ecosystems, and the extinction of wildlife.

Sensitive

Capable of detecting or responding to slight changes, signals, or influences.