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

question 122

Multiple Choice

Jarvix Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{l|r|}\hline \text { Selling price } & \$ 111 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 8,800 \\\hline \text { Units sold } & 8,900 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 34 \\\hline \text { Direct labour } & \$ 37 \\\hline \text { Variable manufacturing overhead } & \$ 3 \\\hline \text { Variable selling and administrative } & \$ 9 \\\hline \text { Fixed costs: } &\\\hline \text { Fixed manufacturing overhead } & \$ 61,600 \\\hline \text { Fixed selling and administrative } & \$ 169,100 \\\hline\end{array}$ 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 was the amount of fixed overhead released for the month under absorption costing?

• A) $0.
• B) $2,100.
• C) $2,800.
• D) $61,600.

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Definitions:

Buffer Zone

An area designated to separate opposing forces or entities to prevent conflict.

Firearms

Portable weapons that discharge projectiles, such as bullets, through the confined burning of propellants.

Physical Violence

The use of physical force with the intent to harm or intimidate another person.

Well Planned

Activities or actions that are carefully thought out and organized in advance to achieve a specific goal.