Khanam Company, Which Has Only One Product, Has Provided the Following

question 68

Multiple Choice

Khanam Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{|l|r|}\hline \text { Selling price } & \$ 97 \\\hline \text { Units in beginning inventory } & 500 \\\hline \text { Units produced } & 8,400 \\\hline \text { Units in ending inventory } & 400 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 20 \\\hline \text { Direct labour } & \$ 37 \\\hline \text { Variable manufacturing overhead } & \$ 1 \\\hline \text { Variable selling and administrative } & \$ 11 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 67,200 \\\hline \text { Fixed selling and administrative } & \$ 161,500 \\\hline\end{array}$ The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.


-What is the amount of fixed overhead deferred under absorption costing?

• A) $0
• B) $3,200
• C) $4,000
• D) $67,200

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Definitions:

Emile Durkheim

A founding figure in the field of sociology, known for his contributions to social theory, including his studies on social cohesion, religion, and the division of labor.

Primitive Religious

Religions or spiritual practices that are characterized by a simpler or earlier developmental stage compared to major organised religions, often deeply intertwined with local culture and nature.

Heterogeneous

Comprising elements from diverse backgrounds or of varied types, often referring to mixed populations or substances.

Postmodernism

A broad movement across philosophy, arts, architecture, and criticism that represents a departure from modernism and is characterized by skepticism about general grand theories and ideologies.