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:

Group Difference

Disparities or variations observed between two or more groups in a study, often measured statistically.

Group 1

Typically refers to a specific subgroup or batch of subjects in an experimental design or study.

Group 2

Typically refers to the second set or category of data points or participants that are part of a study, experiment, or analysis.

Effect Size

A quantitative measure of the strength of a phenomenon or the magnitude of a difference between groups in a study.