Multiple Choice
Use the information below to answer the following question(s) .Honda Heaven produces and sells an auto part for $20.00 per unit.Direct materials are $8 per unit, while direct manufacturing labour averages $1.50 per unit.Variable manufacturing overhead is $0.50 per unit and fixed manufacturing overhead is $250,000 per year.Administrative expenses, all fixed, run $90,000 per year, with sales commissions of $2 per part.Production is 100,000 parts per year.And this year, 75,000 boxes were sold.
-What is Honda Heaven's inventoriable cost per box using absorption costing?
A) $9.50
B) $10.00
C) $12.50
D) $13.40
E) $15.40
Correct Answer:

Verified
Correct Answer:
Verified
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