Pact Company Had Net Income of $972,000 Based on Variable

question 59

Multiple Choice

Pact Company had net income of $972,000 based on variable costing.Beginning and ending inventories were 7,800 units and 5,200 units,respectively.Assume the fixed overhead per unit was $3.61 for both the beginning and ending inventory.What is net income under absorption costing?

• A)$962,614
• B)$1,018,923
• C)$925,077
• D)$969,400
• E)$981,379

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Definitions:

Secondary Shoe

In drum brakes, the brake shoe that is positioned to be actuated secondarily during brake application.

Primary Shoe

The brake shoe in a drum brake system that is closest to the front of the vehicle, playing a critical role in stopping the car.

Duo-servo Brakes

A brake system design where two brake shoes press outward against a drum, with each shoe's action amplifying the other's, enhancing braking efficiency.

Anchor

A device, usually made of metal, used to connect an object to a base or a fixed point to prevent or restrict movement.