Answer the Following Questions Using the Information Below

question 18

Multiple Choice

Answer the following questions using the information below:
Jupiter Corporation incurred fixed manufacturing costs of $16,000 during 2015. Other information for 2015 includes:
The budgeted denominator level is 2,000 units.
Units produced total 2,200 units.
Units sold total 1,900 units.
Variable cost per unit is $4.
Beginning inventory is zero.
The fixed manufacturing cost rate is based on the budgeted denominator level.
-Under absorption costing,the production-volume variance is ________.

• A) $2,400
• B) $2,000
• C) $1,600
• D) 0

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Definitions:

Tariffs

Taxes imposed on imported goods, typically to protect domestic industries or to raise government revenue.

Trade Barriers

Measures implemented by countries to restrict or control the flow of goods and services across its borders.

Central American Free Trade Agreement

A trade agreement aimed at reducing tariffs and trade barriers among the United States and Central American nations.

Ethical Considerations

Aspects of decision-making that involve evaluating the moral principles of right and wrong, often guiding conduct in professional and personal settings.