Eagle Corporation Manufactures a Picnic Table

question 105

Multiple Choice

Eagle Corporation manufactures a picnic table. Shown below is Eagle's cost structure: In its first year of operations, Eagle produced and sold 10,000 tables. The tables sold for $120 each.
-If Eagle had sold only 9,000 tables in its first year,what total amount of cost would have been assigned to the 1,000 tables in finished goods inventory under the absorption costing method?

• A)$37,100
• B)$45,800
• C)$58,000
• D)$74,200

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Definitions:

Intermediate Frequencies

Frequencies that are between the highest and lowest frequencies in a given range, often used in the processing of signals in radios and other communication devices.

Volley Principle

The volley principle is a theory of hearing that suggests groups of auditory neurons can provide a higher frequency response by firing in succession, allowing for the perception of sounds higher than their individual maximum firing rates.

Reflected Sounds

Sounds that are echoed or bounced off surfaces, altering the perception of the sound source.

Absolute Pitch

The ability to identify or reproduce a musical note without the need for a reference tone.