Badlands,Inc The Operating Income Calculated Using Variable Costing and Absorption Costing

question 51

Multiple Choice

Badlands,Inc.reports the following information for the year ended December 31: $$\begin{array} { | l | r | } \hline \text { Units sold } & { 590 \text { units } } \\\hline \text { Sales price } & \$ 130 \text { per unit } \\\hline \text { Direct materials } & \$ 28 \text { per unit } \\\hline \text { Direct labor } & \$ 9 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 15 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 25 \text { per unit } \\\hline \text { Variable selling and administrative costs } & \$ 6 \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 12,400 \text { per year } \\\hline\end{array}$$ The operating income calculated using variable costing and absorption costing amounted to $10,000 and $13,300,respectively.There were no beginning inventories.Determine the total number of units produced during the year.

• A) 590 units
• B) 722 units
• C) 26 units
• D) 132 units

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Definitions:

Parietal Lobes

Regions of the brain located behind the frontal lobes and above the occipital lobes, involved in processing sensory information from various parts of the body, understanding spatial orientation, and managing language and mathematics.

Auditory Cortex

The part of the brain that is responsible for processing auditory information, located in the temporal lobe.

Plasticity

The capacity of the brain to change and adapt in response to experience, learning, or injury.

Temporal Lobes

Regions of the brain located on either side of the brain responsible for processing auditory information and encoding memory.