Answer the Following Questions Using the Information Below

question 160

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.
-Fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total:

• A)$3600
• B)0
• C)$6000
• D)$4800

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Definitions:

Allowance Account

An accounting provision used to create a reserve for accounts receivable that may not be collected in full.

Doubtful Accounts

Accounts receivable that a company believes might become uncollectible in the future, leading to potential losses.

Due Date

The specific date by which a task must be completed or a payment must be made to avoid penalties.

Computing Interest

The process of calculating the interest payment on a loan or investment based on the principal amount, rate, and time.