(Appendix 5A)Wienecke Corporation Manufactures and Sells One Product

question 35

Multiple Choice

(Appendix 5A) Wienecke Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 44, 000 units and sold 41, 000 units.The company's only product is sold for $239 per unit. Assume that the company uses an absorption costing system that assigns $16 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced.The unit product cost under this costing system is:

• A)$88 per unit
• B)$213 per unit
• C)$174 per unit
• D)$104 per unit

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Definitions:

Average Tax Rate

The proportion of total income that an individual or corporation pays in taxes, calculated by dividing the total tax by the taxable income.

Interest Income

The revenue earned from deposit accounts or investments through the interest payments received.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), representing the fraction of income or expenditure used to pay taxes.