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:

Coronary Artery

A vital artery that supplies blood to the heart muscle, essential for providing oxygen and nutrients.

Pulmonary Trunk

The primary artery responsible for transporting blood from the heart's right ventricle to the lungs to receive oxygen.

Right Ventricle

The chamber of the heart that pumps oxygen-depleted blood to the lungs for oxygenation, part of the pulmonary circulation.

Pulmonary Arteries

Blood vessels that carry deoxygenated blood from the heart to the lungs for oxygenation.