Franz Began Business at the Start of This Year and Had

question 35

Multiple Choice

Franz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. Additional data follow. $\begin{array}{lr}\text { Planned production in units } & 10,000 \\\text { Actual production in units } & 10,000 \\\text { Number of units sold } & 8,500\end{array}$ There were no variances.
Income reported under absorption costing and variable costing is:

• A) always the same.
• B) typically different.
• C) always higher under absorption costing.
• D) always higher under variable costing.
• E) always the same or higher under absorption costing.

Identify the factors that determine the scope of an employee's actions within the course and scope of employment.

Understand the circumstances under which an employer or principal can be held liable for an agent's or employee's actions.

Understand the rights and liabilities that arise between agents and principals in various scenarios, including undisclosed principals and contract exclusions.

Recognize the implications of terminating agency relationships, including how authority can be revoked or renounced.

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Definitions:

Activity Cost Pool

A compilation of all the costs related to a specific activity or process in cost accounting.

Overhead

The ongoing administrative and operational expenses of a business that are not directly attributable to specific business activities.

Direct Labor-Hours

A measure representing the total hours worked directly on the production of goods or the provision of services.

Product W8

A hypothetical product referred to by its code name W8, details of which depend on the context.