Answer the Following Questions Using the Information Below:
Healesville Animates

question 202

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:
$\begin{array}{ll}\text { Variable manufacturing costs } & \$ 19 \text { per unit } \\\text { Variable marketing costs } & \$ 1 \text { per unit } \\\text { Fixed manufacturing costs } & \$ 30000 \text { per month } \\\text { Administrative expenses, all fixed } & \$ 6000 \text { per month } \\\text { Ending inventories: } &\\text { Direct materials } & -0- \\\text { WIP } & -0- \\\text { Finished goods } & 750 \text { units }\end{array}$
-The difference between operating profits under variable costing and absorption costing centres on how to account for:

• A)fixed manufacturing costs.
• B)direct materials costs.
• C)variable manufacturing costs.
• D)Both B and C are correct.

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Definitions:

KCl

Potassium chloride, a metal halide salt composed of potassium and chlorine, used in medicine, food processing, and scientific applications.

Moles

A chemical unit of measure that denotes an amount of substance containing approximately 6.022 x 10^23 particles.

Water

A chemical compound with the formula H2O, consisting of two hydrogen atoms bonded to an oxygen atom, essential for most forms of life.

Moles

A unit of measurement used in chemistry to express amounts of a chemical substance, defined as the amount containing exactly 6.02214076×10²³ particles.