The Browning Company Manufactures a Single Product; the Standard Costs $\times$

question 45

Multiple Choice

The Browning Company manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing $6. Selling and administrative costs are $2 per unit sold. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900 000 for the year. Information about Browning's production activity for the year is:
Assuming all information is provided above, the difference in profit between absorption and variable costing would be expected to be:

• A) 25 000 \(\times\) $8
• B) 30 000 \(\times\) $8
• C) 25 000 \(\times\) $6
• D) 30 000 \(\times\) $6

---

Definitions:

CRM System

Customer Relationship Management system; a technology for managing a company's relationships and interactions with current and potential customers.

Post-sales Service

Support provided to a customer after the purchase of a product or service, aimed at ensuring satisfaction and loyalty.

Social Media Tools

Digital platforms and technologies used to create, share, and manage content for social networking.

Three Fs of Selling

A sales philosophy that emphasizes the importance of Feelings, Features, and Facts in the process of persuading potential customers.