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

question 2

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 a variable costing system that assigns $28 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

• A)$179 per unit
• B)$227 per unit
• C)$109 per unit
• D)$81 per unit

---

Definitions:

Website Traffic

The amount of data sent and received by visitors to a website, which is a basic indicator of the website's popularity and viewer engagement.

Search Engines

Web-based tools that enable users to find information on the internet by searching for keywords, phrases, or queries.

Advertisements

Pertains to messages aimed at influencing and informing consumers about products, services, or brands through various media channels.

Social Media Marketing

Involves the use of social media platforms to promote a product or service, engaging with the audience to build brand, increase sales, and drive website traffic.