Lone Star Has Computed the Following Unit Costs for the Year

question 59

Multiple Choice

Lone Star has computed the following unit costs for the year just ended: $$\begin{array} { l r } \text { Direct material used } & \$ 12 \\\text { Direct labor } & 18 \\\text { Variable manufacturing overhead } & 25 \\\text { Fixed manufacturing overhead } & 29 \\\text { Variable selling and administrative cost } & 10 \\\text { Fixed selling and administrative cost } & 17\end{array}$$ Under absorption costing, each unit of the company's inventory would be carried at:

• A) $35.
• B) $55.
• C) $65.
• D) $84.
• E) None of the other answers are correct.

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Definitions:

Vicarious Learning

The process of learning by observing the actions and outcomes of others rather than through direct experience.

Albert Bandura

A psychologist known for his work on social learning theory and for introducing the concept of self-efficacy.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Projection

A defense mechanism where an individual attributes their own undesired feelings, thoughts, or impulses onto someone else.