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Answer the Following Questions Using the Information Below:
Healesville Animates

question 141

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:
 Variable manufacturing costs $19 per unit  Variable marketing costs $1 per unit  Fixed manufacturing costs $30000 per month  Administrative expenses, all fixed $6000 per month  Ending inventories:  Direct materials 0 WIP 0 Finished goods 750 units \begin{array} { l l } \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}
-Absorption costing is required for all of the following EXCEPT:

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Definitions:

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