Bethel,Inc What Is the Operating Income Using Variable Costing If 500

question 199

Multiple Choice

Bethel,Inc.has collected the following data.(There are no beginning inventories.) $$\begin{array} { | l | r | c | } \hline \text { Units produced } & 600 & \text { units } \\\hline \text { Sales price } & \$ 120 & \text { per unit } \\\hline \text { Direct materials } & \$ 10 & \text { per unit } \\\hline \text { Direct labor } & \$ 10 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 7 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 16,400 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 7 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 11,700 & \text { per year } \\\hline\end{array}$$ What is the operating income using variable costing if 500 units are sold?

• A) $14,900
• B) $43,000
• C) $48,300
• D) $11,100

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Definitions:

Incidence

Number of new cases of a specific disorder that develop during a specific period of time.

New Cases

refers to instances or incidents of a disease or condition that have been diagnosed or reported for the first time within a specified period.

Epidemiological Research

The study of the distribution and determinants of health-related states or events in specified populations, and the application of this study to the control of health problems.

Third Variable

A factor that is not directly involved in a research hypothesis but may influence the relationship between the variables being studied.