Answer the Following Questions Using the Information Below:
Zephyr Apparels

question 148

Multiple Choice

Answer the following questions using the information below:
Zephyr Apparels is a clothing retailer. Unit costs associated with one of its products, Product DCT121, are as follows:
$$\begin{array} { l r } \text { Direct materials } & \$ 70 \\\text { Direct manufacturing labor } & 20 \\\text { Variable manufacturing overhead } & 15 \\\text { Fixed manufacturing overhead } & 32 \\\text { Sales commissions ( } 2 \% \text { of sales) } & 5 \\\text { Administrative salaries } & 16 \\\quad \text { Total } & \$ 158\end{array}$$
-What are the indirect nonmanufacturing variable costs per unit associated with Product DCT121?

• A) $5
• B) $21
• C) $90
• D) $142

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Definitions:

Stock Option

A derivative financial instrument that gives the holder the right to buy or sell a stock at a specified price before a certain date.

Time to Expiration

Time to expiration refers to the duration until the expiry date of a derivative contract, such as options or futures, impacting its value and the strategies of investors holding or trading it.

Time Value

The concept that money available at the present time is worth more than the same amount in the future, due to its potential earning capacity.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified quantity of an underlying asset at a predetermined price before a specified date.