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

question 116

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 released under absorption costing?

• A) $0
• B) $3,200
• C) $4,000
• D) $67,200

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Definitions:

Relay Coil

A component in electrical and electronic engineering that produces a magnetic field when electric current flows through it, typically used to control a circuit by opening or closing connections in another circuit.

Time Delay

A predetermined period before an action takes place in a circuit or system, often used for timing control in automation.

Bit Level Addressing

A method of accessing or manipulating individual bits within a data structure, allowing for more precise control and efficiency in programming.

Accumulated Value

An accumulated value is a total sum that has been gathered or added up over time, often seen in contexts such as finance, statistics, or data collection.