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

question 28

Multiple Choice

(Appendix 5A) Feltner 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 49, 000 units and sold 42, 000 units.The company's only product is sold for $225 per unit. Assume that the company uses a variable costing system that assigns $19 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

• A)$532, 000
• B)$399, 000
• C)($210, 000)
• D)$882, 000

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Definitions:

Collagen

A structural protein found in the skin, bones, and connective tissues, providing strength and elasticity.

Immunity

The body's ability to resist or defend against infectious diseases and foreign substances, involving both specific and nonspecific components like antibodies and white blood cells.

Hydroxyapatite

Mineral with the empiric formula 3 Ca3(PO4)2 ∙ Ca(OH)2; the main mineral of bone and teeth.

Collagen

A protein that is the primary structural component of connective tissues in animals and the most abundant protein in mammals.