Last Year, Ella Company Produced 10,000 Units and Sold 9,000

question 80

Multiple Choice

Last year, Ella Company produced 10,000 units and sold 9,000 units at a price of $9 per unit. Costs for last year were as follows:
Fixed factory overhead is applied on the basis of expected production. Last year, Ella expected to produce 10,000 units.
$$\begin{array} { l r } \text { Direct materials } & \$ 10,000 \\\text { Direct labour } & 15,000 \\\text { Variable factory overhead } & 5,000 \\\text { Fixed factory overhead } & 20,000 \\\text { Variable selling expense } & 7,200 \\\text { Fixed selling expense } & 5,000 \\\text { Fixed administrative expense } & 12,000\end{array}$$
-Refer to the Figure.What is the operating income for last year under variable costing?

• A)$6,800
• B)$9,000
• C)$9,800
• D)$11,800

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Definitions:

Cross-Cultural Differences

The variations in norms, values, beliefs, and practices among people from different cultures or societal backgrounds.

Survey Field Studies

Research methods involving the collection of data from a large number of respondents through questionnaires or interviews to analyze behaviors or attitudes.

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Controlled testing environments in which variables can be manipulated to observe their effects on certain outcomes, often used in scientific and psychological research.

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