Use the Information Below to Answer the Following Question(s)

question 112

Multiple Choice

Use the information below to answer the following question(s) .Honda Heaven produces and sells an auto part for $20.00 per unit.Direct materials are $8 per unit, while direct manufacturing labour averages $1.50 per unit.Variable manufacturing overhead is $0.50 per unit and fixed manufacturing overhead is $250,000 per year.Administrative expenses, all fixed, run $90,000 per year, with sales commissions of $2 per part.Production is 100,000 parts per year.And this year, 75,000 boxes were sold.
-Variable costing regards fixed manufacturing overhead as

• A)an unexpired cost.
• B)an inventoriable cost.
• C)a period expense.
• D)a product cost.
• E)a deferred asset.

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