Last Year, Richmon Company Produced 10,000 Units and Sold 6,000

question 141

Multiple Choice

Last year, Richmon Company produced 10,000 units and sold 6,000 units at a price of $20.Costs for last year were as follows:

Fixed factory overhead is applied based on expected production.Last year, Richmon expected to produce 10,000 units.
What is operating income for last year under absorption costing?

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Definitions:

Spotlight Effect

The cognitive bias where an individual overestimates how much others notice their appearance or behavior.

Self-efficacy

An individual's belief in their capacity to perform tasks needed to realize specific results.

Collectivist Self

An aspect of self-identity that is defined and valued by in-group relationships, prioritizing the group over the individual.

Individualism

A social theory favoring freedom of action for individuals over collective or state control, often emphasizing personal independence and self-reliance.