Answer the Following Questions Using the Information Below

question 179

Multiple Choice

Answer the following questions using the information below:
Hewitt 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 VARIABLE 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 included in ending inventory total:

• A)$900
• B)$1200
• C)$1500
• D)0

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Definitions:

Tax Imposed

An obligatory financial charge or other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Grapefruit

A citrus fruit known for its slightly bitter and sour taste, often eaten as part of breakfast or used in cooking.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Inverse Demand Function

A function that expresses the price of a good or service as a function of the quantity demanded, typically used in economics to determine pricing strategies.