Yazzie,Inc

question 7

Multiple Choice

Yazzie,Inc.reports the following information for the year ended December 31:

The operating income calculated using variable costing and absorption costing amounted to $9300 and $11,400,respectively.There were no beginning inventories.Determine the total fixed manufacturing overhead that will be expensed under variable costing for the year 2016.

• A)$20,700
• B)$18,600
• C)$34,720
• D)$30,380

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Definitions:

Insulin-Dependent Diabetes

A chronic condition where the pancreas produces little or no insulin, requiring the person to administer insulin through injections or a pump; also known as Type 1 diabetes.

Poisson Distribution

A probability distribution that models the number of times an event occurs within a fixed interval of time or space.

Incidence

The frequency or rate at which new cases of a particular condition occur in a specified population over a given period of time.

Chronic Disorder

A long-lasting condition that can be controlled but not cured, often requiring ongoing management and treatment.