Heung,IncReports the Following Information for the Year Ended December 31

question 193

Multiple Choice

Heung,Inc.reports the following information for the year ended December 31: $$\begin{array} { | l | r | } \hline \text { Units sold } & \text { 560units } \\\hline \text { Sales price } & \$ 140 \text { per unit } \\\hline \text { Direct materials } & \$ 29 \text { per unit } \\\hline \text { Direct labor } & \$ 8 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 13 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 20 \text { per unit } \\\hline \text { Variable selling and administrative costs } & \$ 5 \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 13,200 \text { per year } \\\hline\end{array}$$ The operating income calculated using variable costing and absorption costing amounted to $9,000 and $10,800,respectively.There were no beginning inventories.Determine the total fixed manufacturing overhead that will be expensed under variable costing for the year 2016.

• A) $13,000
• B) $11,200
• C) $27,440
• D) $28,000

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Definitions:

Actual Price

The final price at which a product or service is sold, after including discounts, promotions, and additional charges or fees.

Energy

The capacity to do work, existing in various forms such as kinetic, potential, thermal, electrical, chemical, and nuclear energy.

Excitement

A strong feeling of enthusiasm and eagerness, often related to an event or activity that is looked forward to with great anticipation.

Marketing Mix

A foundational marketing model comprising four elements—product, price, place, and promotion—used by businesses to achieve their marketing objectives.