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:

Functional Design

A design approach focused on creating products, systems, or structures based on their intended function or purpose.

Organization Identification

relates to the sense of belonging an individual feels towards their organization, influencing their attitudes and behaviors.

Narrow Tasks

Specific, well-defined assignments or responsibilities that require focused attention and are often part of a larger project or goal.

Matrix Design

An organizational structure that combines two or more different hierarchies, typically product- and function-based, to facilitate resource sharing and collaboration.