Answer the Following Question(s)using the Information Below

question 58

Multiple Choice

Answer the following question(s) using the information below.Heinrich Corporation budgeted fixed manufacturing costs of $6,000 during 2012.Other information for 2012 includes:
The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level.Manufacturing variances are closed to cost of goods sold.
-Operating income using absorption costing will be ________ than operating income if using variable costing.

• A)$1,500 higher
• B)$1,200 lower
• C)$900 higher
• D)$2,400 lower
• E)no different

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Definitions:

Concert Tickets

Tickets sold as a means to gain entry to a live performance of musical artists or bands.

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Published materials that provide detailed information on a particular subject, often used as primary teaching tools in educational settings.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford given their income and the prices of goods.

Music Downloads

The process of transferring music files from the internet to a computer or mobile device for offline listening.