Freetown Corporation Incurred Fixed Manufacturing Costs of $26,000 During 2017

question 31

Multiple Choice

Freetown Corporation incurred fixed manufacturing costs of $26,000 during 2017. Other information for 2017 includes:
The budgeted denominator level is 2,600 units.
Units produced total 1,800 units.
Units sold total 1,200 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.
The production-volume variance is ________. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

• A) $6,000
• B) $8,000
• C) $14,000
• D) $0

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Definitions:

Racial Stereotypes

Oversimplified and generalized beliefs about a particular group of people based on their race.

Critical Thinking

The intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an informed conclusion.

Gender Stereotypes

Preconceived and oversimplified beliefs about the characteristics, attributes, and behaviors of males or females, often resulting in discrimination or bias.

Spatial-Temporal Reasoning

The cognitive process involved in manipulating and reasoning about spatial and temporal information.