Answer the Following Questions Using the Information Below:
Queanbeyan Company

question 3

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.
-Woggoon Nature Corporation has provided the following information:
$$\begin{array} { l l } \text { Beginuing fixed manufacturing overhead in inventory } & \$ 60000 \\\text { Ending fixed manufacturing overhead in inventory } & 45000 \\\text { Beginuing variable manufacturing overhead in inventory } & \$ 30000 \\\text { Ending variable manufacturing overhead in inventory } & 14250 \\& \\\text { Fixed selling and administrative costs } & \$ 724000 \\\text { Units produced } & 5000 \text { units } \\\text { Units sold } & 4800 \text { units }\end{array}$$
What is the difference between operating profits under absorption costing and variable costing?

• A)$750
• B)$7500
• C)$15 000
• D)$30 750

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Definitions:

Target Sector

A specific segment of the market that a company aims to serve or sell its products and services to.

International Segmentation

The process of dividing a brand's market into distinct groups of consumers by geographical regions or countries, based on shared needs or preferences, for more targeted marketing.

Unique Segmentation

The process of dividing a market into distinct and specific groups of consumers who share unique characteristics or needs.

Market Appeal

The attractiveness of a product or service to potential customers, often determined by its value, quality, and relevance to the target market.