Theele Corporation
Theele Corporation Has the Following Information for April

question 99

Multiple Choice

Theele Corporation
Theele Corporation has the following information for April, May, and June: $\begin{array}{llll}&\text { April}&\text { May}&\text { June }\\\text { Units produced } & 10,000 & 10,000 & 10,000 \\\text { Units sold } & 7,000 & 8,500 & 10,500\end{array}$ Production costs per unit (based on 10,000 units) are as follows: $$\begin{array} { l l } \text { Direct materials } & \$ 13 \\\text { Direct labour } & 9 \\\text { Variable manufacturing overhead } & 7 \\\text { Fixed manufacturing overhead } & 5 \\\text { Variable selling and administrative expenses } & 10 \\\text { Fixed selling and administrative expenses } & 4\end{array}$$ The company had no beginning inventories for April, and all units were sold for $55 per unit. Costs are stable over the three months.
-Refer to Theele Corporation. What is the May contribution margin using the variable costing method?

• A) $136,000
• B) $170,000
• C) $204,000
• D) $240,000

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Definitions:

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Ekman

Refers to Paul Ekman, a psychologist known for his research on nonverbal behavior and the universality of facial expressions in conveying emotions.

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A negative emotional state associated with anxiety, tension, and agitation.

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