Answer the Following Questions Using the Information Below

question 174

Multiple Choice

Answer the following questions using the information below:
Tunney Corporation incurred fixed manufacturing costs of $7,200 during 2011. Other information for 2011 includes:
The fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.
-Under absorption costing, fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total:

• A)$8,550
• B)$9,000
• C)$7,200

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