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

question 13

Multiple Choice

(Appendix 5A) Prehn 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 36, 000 units and sold 30, 000 units.The company's only product is sold for $251 per unit. Assume that the company uses an absorption costing system that assigns $28 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)$81 per unit
• B)$109 per unit
• C)$227 per unit
• D)$179 per unit

---

Definitions:

Amplitude

The height of a wave from its baseline to its peak, indicating the strength or intensity of the wave, such as in sound or light.

Intensity

The magnitude or strength of a phenomenon, often used in context with physical phenomena such as light, sound, and emotions.

Amplitude

The magnitude or intensity of a wave's fluctuation, measured from its baseline to its peak, in physical and electrical phenomena.

Relative Motion

The concept that the motion of an object is always determined relative to some other moving or stationary object.