AAA Manufacturing Inc, Makes a Product with the Following Costs

question 47

Multiple Choice

AAA Manufacturing Inc, makes a product with the following costs per unit:
Direct materials $180
Direct labor $20
Manufacturing overhead (variable) $30
Manufacturing overhead (fixed) $130
Marketing costs $75
What would be the inventoriable cost per unit under variable costing and what would it be under absorption costing?

• A) $180 for variable costing and $305 under absorption costing
• B) $230 for variable costing and $305 under absorption costing
• C) $230 for variable costing and $360 under absorption costing
• D) $200 for variable costing and $305 under absorption costing

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Definitions:

Memory Formation

The biological and psychological processes involved in creating, storing, and recalling memories from experience.

Temperature

A measure of the warmth or coldness of an object or environment, expressed in degrees.

Eating And Drinking

The act of consuming food and liquids as part of meeting nutritional needs and sustaining life.

Sexual Behavior

Actions or practices related to the expression of sexuality, including a wide range of activities and preferences influenced by biological, psychological, and social factors.