Alltech Inc What Is the Operating Income Using Absorption Costing If 500

question 228

Multiple Choice

Alltech Inc.has collected the following data.(There are no beginning inventories.) $$\begin{array} { | l | r | c | } \hline \text { Units produced } & 510 & \text { units } \\\hline \text { Sales price } & \$ 150 & \text { per unit } \\\hline \text { Direct materials } & \$ 16 & \text { per unit } \\\hline \text { Direct labor } & \$ 10 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 10 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 16,000 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 9 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 10,500 & \text { per year } \\\hline\end{array}$$ What is the operating income using absorption costing if 500 units are sold? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

• A) $27,500
• B) $26,315
• C) $31,641
• D) $38,315

Understand the differences between sensory memory, short-term memory, and long-term memory.

Identify strategies to improve memory recall such as chunking and rehearsal.

Recognize the components and functions of working memory, according to Baddeley's model.

Distinguish between explicit and implicit memory systems.

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Definitions:

Confection Corporation

A business entity specialized in the production and sale of sweets and chocolates.

Perfect Tender Rule

A common law rule under which a seller was required to deliver to the buyer goods that conformed perfectly to the requirements stipulated in the sales contract. A tender of nonconforming goods would automatically constitute a breach of contract. Under the Uniform Commercial Code, the rule has been greatly modified.

Conform

To act in accordance or harmony with established standards, rules, or laws.

Contract

A contract is a legally enforceable agreement between two or more parties with mutual obligations.