Answer the Following Questions Using the Information Below

question 74

Multiple Choice

Answer the following questions using the information below:
Argon Corp. had capacity to produce 15,000 units of L3 using 30,000 kg of direct materials. Argon produced 14,750 units of L3 by processing 27,500 kg of direct materials. Conversion cost per unit is $7.50. Argon can add or reduce manufacturing capacity in increments of 2,500 kgs.
-What is the cost of unused capacity for conversion costs of Argon?

• A) $3,750
• B) $7,500
• C) $9,375
• D) $1,875

---

Definitions:

Autonomous Thinking

Independent thinking that is not influenced by others' opinions or beliefs; self-directed reasoning.

Heteronomous Thinking

A stage in cognitive development where children believe that rules are unchangeable and given by authority, typically associated with Jean Piaget's moral development stages.

Preconventional Moral Thought

The first stage in Kohlberg's theory of moral development, where behavior is influenced by the consequences of actions, including punishment and reward.

Immanent Justice

Piaget’s concept of the childhood expectation that if a rule is broken, punishment will be meted out immediately.