Answer the Following Questions Using the Information Below

question 196

Multiple Choice

Answer the following questions using the information below:
Queanbeyan Company incurred fixed manufacturing costs of $7200 during 2018.Other information for 2018 includes:
The budgeted denominator level is 800 units.
Units produced total 1000 units.
Units sold total 950 units.
Beginning inventory was zero.
The fixed manufacturing cost rate is based on the budgeted denominator level.Manufacturing variances are closed to cost of goods sold.
-Under variable costing,the fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total:

• A)0
• B)$7200
• C)$9000
• D)$8550

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Definitions:

Balance Sheet Accounts

Accounts that appear on the balance sheet, such as assets, liabilities, and shareholders' equity, reflecting the financial position at a specific point in time.

Adjusting Entries

At the close of an accounting period, entries in accounting records to apportion income and outlays to the actual time they happened.

Prepaid Rent

An expense that represents payment made in advance for the use of property or space, which is recorded as an asset until it is consumed or the rental period elapses.

Adjusting Entries

Entries recorded at the conclusion of an accounting cycle to distribute revenues and expenses to the timeframe in which they were truly incurred.