A Company Reports the Following Information for Its First Year

question 142

Multiple Choice

A company reports the following information for its first year of operations.
$$\begin{array} { l l } \text { Units produced this year } & ? \text { units } \\\text { Units sold this year } & 1,500 \text { units } \\\text { Direct materials } & \$ 9 \text { per unit } \\\text { Direct labor } & \$ 5 \text { per unit } \\\text { Variable overhead } & \$ 7 \text { per unit } \\\text { Fixed overhead } & \$ 24,000 \text { in total }\end{array}$$
If the company's cost per unit of finished goods using absorption costing is $27, how many units were produced?

• A) 4,000 units.
• B) 3,600 units.
• C) 1,846 units.
• D) 2,667 units.
• E) 2,000 units.

---

Definitions:

Licensing Requirements

The set of qualifications and conditions that individuals or entities must meet in order to legally practice certain professions or activities.

Government Research Funds

Government research funds are financial allocations provided by governmental bodies to support scientific, academic, or technological research and development.

Faith-Healing

A practice where belief and prayer are used to heal illnesses and injuries, often considered a spiritual or religious approach to wellness.

Religious Reasons

Motivations or justifications for actions based on beliefs, practices, or principles derived from a particular religious faith.