What Was the Amount of Fixed Overhead Released for the Month

question 122

Multiple Choice

What was the amount of fixed overhead released for the month under absorption costing?
Refer To: 08-04

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

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials, energy usage, or labor directly associated with production.

Flash Frozen

A method of freezing food quickly at extremely low temperatures to preserve its quality, nutrients, and taste.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and equipment leases.

Variable Costs

Expenditures that fluctuate in relation to business activity levels, including costs linked to production volume or service intensity.