Answer the Following Questions Using the Information Below:
Daniel Rubber

question 184

Multiple Choice

Answer the following questions using the information below:
Daniel Rubber Company produces a specialty item. Management has provided the following information:
$\begin{array}{lr}\text { Actual sales } & 110,000 \text { units } \\\text { Budgeted production } & 100,000 \text { units } \\\text { Selling price } & \$ 40.00 \text { per unit } \\& \\\text { Direct material costs } & \$ 8.00 \text { per unit } \\\text { Variable manufacturing overhead } & \$ 3.00 \text { per unit } \\\text { Variable ad ministrative costs } & \$ 5.00 \text { per unit } \\\text { Fixed manufacturing overhead } & \$ 4.00 \text { per unit }\end{array}$
-What is the cost per statue if throughput costing is used?

• A) $20.00
• B) $17.00
• C) $13.00
• D) $8.00

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Definitions:

Nonconforming Use

A land-use situation where a property is utilized in a manner that does not comply with the current zoning laws, but has been allowed because it predated zoning regulations.

Zoning Ordinances

Laws regulating the use of land and buildings within specific areas to control and direct property development.

Assumes the Mortgage

The process by which a buyer takes over the seller's mortgage as part of the terms of purchasing a home.

Personally Liable

Refers to the direct responsibility an individual has to fulfill an obligation or debt, making their personal assets vulnerable to being claimed in the event of non-fulfillment.