Answer the Following Questions Using the Information Below

question 166

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 absorption costing,fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total:

• A)$8550
• B)0
• C)$7200
• D)$9000

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Definitions:

Appraisal Costs

The costs associated with inspecting, testing, and ensuring that products or services meet quality standards.

Specifications

Detailed descriptions of the requirements, dimensions, materials, or other criteria necessary for the production of a product or execution of a project.

External Appraisers

Independent professionals who evaluate the value of assets, properties, or businesses, often for legal, sales, or tax purposes.

Quality Costs

The total costs associated with ensuring products or services meet quality standards, including prevention, appraisal, and failure costs (both internal and external).