Answer the Following Questions Using the Information Below

question 95

Multiple Choice

Answer the following questions using the information below:
Stiller Corporation incurred fixed manufacturing costs of $12,000 during 2011. Other information for 2011 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.
-Fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total:

• A)$7,200
• B)$9,600
• C)$12,000

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Definitions:

Four-Year Term

A period often associated with the duration of certain elected offices or specific agreements, notably used to denote the length of a presidential term in many countries.

Federal Reserve Act

The 1913 U.S. legislation that established the Federal Reserve System as the central banking authority, responsible for monetary policy and oversight of banks.

Established

Refers to something that has been in existence for a long time and is accepted by many or most people.

Board of Governors

A governing body at the top of an organization or institution, such as the Federal Reserve, responsible for overseeing its operations and making key decisions.