Springer Began Business at the Start of the Current Year

question 46

Multiple Choice

Springer began business at the start of the current year. The company planned to produce 40,000 units, and actual production conformed to expectations. Sales totaled 37,000 units at $42 each. Costs incurred were: $\begin{array}{lr}\text { Variable manufacturing overhead per unit } & \$ 19 \\\text { Fixed manufacturing overhead } & 240,000 \\\text { Variable selling and administrative cost per unit } & 7 \\\text { Fixed selling and administrative cost per unit } & 140,000\end{array}$ If there were no variances, the company's variable-costing income would be:

• A) $155,000.
• B) $212,000.
• C) $240,500.
• D) $592,000.
• E) None of the other answers are correct.

---

Definitions:

Verbal Communication

The process of exchanging information and ideas using words, whether spoken or written.

Facial Expressions

The variations in the movement of the facial muscles that convey an individual's emotions, thoughts, or attitudes.

Kinesics

The study of body motion or body behavior as a form of non-verbal communication.

Verbal Communication

The use of spoken words to convey messages, ideas, or feelings.