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:

Gibson's Theory

Gibson's Theory, by psychologist James Gibson, suggests that perception is a direct process that does not involve processing information or mental constructions.

Affordances

The possibilities for action offered by objects and environments, emphasizing the relationship between the physical properties of an item and the user.

Direct Perception

A concept in psychology and ecological psychology proposing that the environment offers rich information, allowing for immediate perception without needing significant cognitive processing.

Perception and Action

The interplay between how we perceive our environment and how we respond to it through movement.