The Following Information Relates to Charlin Industries for the Year

question 32

Multiple Choice

The following information relates to Charlin Industries for the year ending December 31, 2014, the company's first year of operations: $$\begin{array} { l r } \text { Units produced } & 100,000 \\\text { Units sold } & 80,000 \\\text { Units in ending inventory } & 20,000 \\\text { Fixed manufacturing overhead } & \$ 650,000\end{array}$$ How much fixed manufacturing overhead would be expensed in 2014 using variable costing?

• A) $520,000
• B) $130,000
• C) $650,000
• D) $0

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