Brady Ltd Uses a Normal Absorption Costing System in Which

question 45

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 sales revenue for the year was

• A) $210,000
• B) $215,040
• C) $260,000
• D) $204,960

---

Definitions:

Electronegativity Difference

The measure of the tendency of an atom to attract a bonding pair of electrons towards itself, used to predict the nature of chemical bonds.

Polar Covalent

A type of chemical bond where two atoms share a pair of electrons but they do so unequally, leading to a partial positive charge on one atom and a partial negative charge on the other.

Nonpolar Molecules

Molecules that do not have distinct electrical poles, resulting in a uniform distribution of electrical charge and often being hydrophobic or insoluble in water.

Nonpolar Bonds

Chemical bonds where electrons are equally shared between two atoms, resulting in no significant charge distribution across the molecule.