Reference: 19_03
Scavenger Company, a Manufacturer of Recycling Bins, Began

question 133

Multiple Choice

Reference: 19_03
Scavenger Company, a manufacturer of recycling bins, began operations on January 1 of the current year. During this time, the company produced 60,000 units and sold 55,000 units at a sales price of $15 per unit. Cost information for this year is shown in the following table:

$\begin{array}{ll}\text { Production costs } & \\\quad \text { Direct materials } & \$ 2.50 \text { per unit } \\\text { Direct labor } & \$ 3.00 \text { per unit } \\\text { Variable overhead } & \$ 45,000 \text { in total } \\\quad \text { Fixed overhead } & \$ 240,000 \text { in total } \\\text { Nonproduction costs } & \\\quad \text { Variable selling and administrative } & \$ 10,000 \text { in total } \\\text { Fixed selling and administrative } & \$ 50,000 \text { in total }\end{array}$


-Given the Star Services,Inc.data,what is net income using absorption costing?

• A) $18,670,000
• B) $18,774,000
• C) $16,360,000
• D) $11,275,000
• E) $11,170,000

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Definitions:

Task-Motivated Leaders

Leaders who are primarily focused on achieving specific goals and completing tasks efficiently.

High Control

A management style or situation characterized by strict rules and a high degree of oversight and direction.

Low Control

Situations or environments where there is minimal regulation, guidance, or command, often leading to high autonomy but potentially high uncertainty as well.

Situations

The set of circumstances or contexts in which events occur, often influencing outcomes and decisions.