Use the Information Below to Answer the Following Question(s)

question 108

Multiple Choice

Use the information below to answer the following question(s) .Car Tunes produces car radios.Actual fixed manufacturing overhead is the same as the budgeted amount, $330,000.Production in September increased by 10% over the previous month's production.August production was 5,000 radios.The production level is the same as the budgeted denominator level.At the end of September, 1,000 radios remained in stock.In August, all of the radios were sold by the end of the month and there was no remaining work in process inventory.
-What are Car Tune's appropriate period costs for September if variable costing is used?

• A)$330,000
• B)$363,000
• C)$550,000
• D)$583,000
• E)$0

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Definitions:

Controllable Costs

Expenses that a manager or business can influence or manage directly, such as supplies, marketing expenses, and staff wages.

Responsibility Accounting System

A system of accounting that segments financial data and operational data by areas of responsibility, facilitating monitoring and assessment of individual departments or managers.

Responsibility Center

A segment within an organization with its own budgets and financial targets, where the managers are accountable for its performance.

Evaluation Process

A systematic method to assess the performance, value, or impact of an object or effort through defined criteria and measures.