Answer the following question(s)using the information below.Heinrich Corporation budgeted fixed manufacturing costs of $6,000 during 2012.Other information for 2012 includes:
The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level.Manufacturing variances are closed to cost of goods sold.
-Fixed manufacturing costs expensed on the income statement (excluding adjustments for variances)total
A)$3,600.
B)$4,800.
C)$6,000.
D)$0.
E)$7,200.

Question

Answer the following question(s)using the information below.Heinrich Corporation budgeted fixed manufacturing costs of $6,000 during 2012.Other information for 2012 includes:
  The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level.Manufacturing variances are closed to cost of goods sold.
-Fixed manufacturing costs expensed on the income statement (excluding adjustments for variances)total
A)$3,600. 
B)$4,800. 
C)$6,000. 
D)$0. 
E)$7,200.

Quizplus · Accepted Answer

Fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) are considered period costs and are expensed in the period in which they are incurred.

Answer the Following Question(s)using the Information Below