Answer the Following Questions Using the Information Below:
Jindabyne Pillows

question 256

Multiple Choice

Answer the following questions using the information below:
Jindabyne Pillows produces and sells a decorative pillow for $75.00 per unit.In the first month of operation,
2000 units were produced and 1750 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes:
$\begin{array}{lr}\text { Variable manufacturing costs } & \$ 20.00 \text { per unit } \\\text { Variable marketing costs } & \$ 3.00 \text { per unit } \\\text { Fixed manufacturing costs } & \$ 7.00 \text { per unit } \\\text { Administrative expenses, all fixed } & \$ 15.00 \text { per unit }\\\text { Ending inventories: }\\\text { Direct materials } & -0- \\\text { WIP } & -0- \\\text { Finished goods } & 250 \text { urits }\end{array}$
-What is 'operating profit' using variable costing?

• A)$78 750
• B)$65 750
• C)$52 500
• D)$47 000

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Definitions:

Unitary

Pertaining to being a single or unified entity without division, often used in different contexts to denote oneness or singleness.

Separation

The process or state of being apart from something or someone, often used to describe the emotional process of detaching from a person, place, or thing.

Earlier

Occurring before a specified time or event.

A-not-B Error

A cognitive error observed in infants where they search for an object where it was previously found rather than its new location after observing it being moved.