Freetown Corporation Incurred Fixed Manufacturing Costs of $30,000 During 2017

question 103

Multiple Choice

Freetown Corporation incurred fixed manufacturing costs of $30,000 during 2017. Other information for 2017 includes:
The budgeted denominator level is 2,000 units.
Units produced total 1,800 units.
Units sold total 1,300 units.
Beginning inventory was zero.
The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.
Fixed manufacturing costs included in ending inventory total ________. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

• A) $8,333
• B) $11,538
• C) $7,500
• D) $0

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Definitions:

Behavioral Activation

A therapeutic approach that encourages engagement in positively reinforcing activities to treat depression and other mental health issues.

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In behavioral psychology, a process by which a behavior is strengthened or increased in frequency by a consequence that follows the behavior.

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