Assume That the Company Uses a Variable Costing System That

question 19

Multiple Choice

Assume that the company uses a variable costing system that assigns $22 of direct labor cost to each unit that is produced. The net operating income under this costing system is:

• A)$714,000
• B)$824,000
• C)$802,000
• D)$880,000

---

Definitions:

Sample Mean

The average value of a sample subset of a population, often used as an estimate of the population mean.

Pooled Standard Deviation

A method of estimating the standard deviation across two or more sample sets by pooling their variances under the assumption that the population variances are equal.

Sample Means

The average values derived from multiple sample sets drawn from a population, important in understanding the population's overall mean.

Control Limits

The boundaries in control charts that indicate the limits of expected variations in a stable process.