Answer the following questions using the information below:
Wangaratta Corporation incurred fixed manufacturing costs of $6000 during 2018.Other information for 2018 includes:
The budgeted denominator level is 1000 units.
Units produced total 750 units.
Units sold total 600 units.
Beginning inventory was zero.
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)$3600
B)0
C)$6000
D)$4800

Question

Quizplus · Accepted Answer

Under absorption costing, fixed manufacturing costs are expensed based on the units sold. The fixed manufacturing cost per unit is $6000/1000 = $6. For 600 units sold, the expensed fixed manufacturing costs are 600 * $6 = $3600.

Answer the Following Questions Using the Information Below