Answer the Following Questions Using the Information Below

question 161

Multiple Choice

Answer the following questions using the information below:
Wangaratta Corporation incurred fixed manufacturing costs of $6000 during 2018.Other information for 2018 includes:
The budgeted denominator level is 1000 units.
Units produced total 750 units.
Units sold total 600 units.
Beginning inventory was zero.
The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level.Manufacturing variances are closed to cost of goods sold.
-Operating profit using absorption costing will be ________ than operating profit if using variable costing.

• A)$2400 lower
• B)$3600 lower
• C)$900 higher
• D)$2400 higher

Understand the impact of pressure to achieve goals on ethical behavior.

Comprehend the leadership beliefs that guide socially responsible organizational practices.

Identify criteria for evaluating socially responsible corporate behavior.

Understand the value and components of formal codes of ethics in organizations.

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Definitions:

Integer Rule

A mathematical principle that states solutions to certain problems must be whole numbers, commonly applied in optimization and scheduling.

Distributor

An intermediary entity in the supply chain that buys products from manufacturers or wholesalers and sells them to retailers or direct to consumers.

Lot Sizing Decisions

The process of determining the optimal order quantity that minimizes total inventory costs, including ordering, holding, and stockout costs.

Fixed Costs

Expenses that do not change in the short term, regardless of the level of production or sales activities, such as rent, salaries, and insurance.