Assume That the Company Uses an Absorption Costing System That

question 31

Multiple Choice

Assume that the company uses an absorption costing system that assigns $19 of direct labor cost and $50 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

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

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Definitions:

Japanese Woodblock

A technique in printmaking originating in Japan, prized for its ability to produce vibrant colors and intricate details, especially noted in the ukiyo-e genre.

Textile Effect

Textile Effect refers to the artistic technique or visual appearance wherein works of art, particularly paintings, mimic the texture or patterns of textiles, creating a tapestry-like quality.

Bold Colors

The use of intense, vivid, or striking colors in art, design, or fashion to create impact or convey strong emotions.

Vincent Van Gogh

A post-impressionist painter from the Netherlands known for his vivid colors, emotional honesty, and bold brushwork, with works like "Starry Night" and "Sunflowers."