Answer the Following Questions Using the Information Below:
Healesville Animates

question 38

Multiple Choice

Answer the following questions using the information below:
Healesville Animates produces and sells a luxury animal pillow for $40.00 per unit.In the first month of operation,3000 units were produced and 2250 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes:
$\begin{array}{ll}\text { Variable manufacturing costs } & \$ 19 \text { per unit } \\\text { Variable marketing costs } & \$ 1 \text { per unit } \\\text { Fixed manufacturing costs } & \$ 30000 \text { per month } \\\text { Administrative expenses, all fixed } & \$ 6000 \text { per month } \\\text { Ending inventories: } &\\text { Direct materials } & -0- \\\text { WIP } & -0- \\\text { Finished goods } & 750 \text { units }\end{array}$
-What is operating profit when using absorption costing?

• A)($11 750)
• B)$16 500
• C)$18 750
• D)$4000

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Definitions:

Kulik

Refers to James Kulik, a psychologist who contributed to the understanding of the effects of feedback on learning and the benefits of computer-based instruction.

Equity Theory

A theory that proposes that individuals are motivated by a desire for fairness and equity in their relationships and will take actions to maintain or restore equity.

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Characterized by a lack of interest, enthusiasm, or concern for things that others find moving or exciting.

Antarctic

The Earth's southernmost continent, surrounding the South Pole, known for its extreme cold temperatures and ice-covered landscape.