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

question 96

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 manufacturing overhead deferred under absorption costing?

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

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Definitions:

Pumpkins

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Individuals below the legal age who engage in smoking tobacco products.

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Individuals over the legal adult age who consume tobacco products through the act of smoking.

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A term used in economics to describe a situation where the demand for a good or service greatly changes in response to a change in price.