Answer the Following Questions Using the Information Below

question 161

Multiple Choice

Answer the following questions using the information below:
Wangaratta Corporation incurred fixed manufacturing costs of $6000 during 2018.Other information for 2018 includes:
The budgeted denominator level is 1000 units.
Units produced total 750 units.
Units sold total 600 units.
Beginning inventory was zero.
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 profit using absorption costing will be ________ than operating profit if using variable costing.

• A)$2400 lower
• B)$3600 lower
• C)$900 higher
• D)$2400 higher