Brady Ltd Uses a Normal Absorption Costing System in Which the the Overhead

question 21

Multiple Choice

Brady Ltd. uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred: The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods. The fixed overhead in cost of goods sold amounted to

• A) $90,000
• B) $66,960
• C) $72,000
• D) $84,960

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Definitions:

Benjamin Lee Whorf

An American linguist and fire prevention engineer known for his ideas on linguistic relativity, the hypothesis that the structure of a language affects its speakers' world view or cognition.

Theorist

An individual specializing in the development of theories, often within a specific domain such as science or philosophy.

Bilingualism

The ability of an individual to use two languages effectively, often characterized by fluency in speaking, reading, and writing in both languages.

More Than One Language

The ability or practice of a person to communicate effectively in multiple languages.