adr an nawaz 12/2/171 iz: Cost Accounting 2 Assessment Time Remaining: 00:52:26

Question

adr an nawaz 12/2/171 iz: Cost Accounting 2 Assessment Time Remaining: 00:52:26 Sub Question: 1 pt 3 of 25 (1 complete) This Quiz: 25 pts p ter Corporation inaurred fixed manufacturing costs of $16,000 during 2015. Other information for 2015 includes: e budgeted denominator level is 2,000 units. its produced total 2,300 units. its sold total 1,900 units riable cost per unit is $6 ginning inventory is zero. e fixed manufacturing cost rate is based on the budgeted denominator level. e operating income using variable costing will be , as compared to the operating income under absorption costing (Round intermediary calculations to the arest cent.) A lower by $2,400 B. higher by $3,200 C. higher by $2,400 D. lower by $3,200 Click to select your answer

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Fixed Manufacturing cost                 16,000.00 Budgeted denominator                   2,000.00 Fixed manufacturing cost rate = 16000/2000                            8.00 No of units sold                   1,900.00 No of units produced                   2,300.00 Since no of units sold is less than units produced So in absorption costing, some part of fixed cost would be carried forward. So income under variable costing would be lower or under absorption costing would be higher Fixed cost carried forward = 400 * 8                   3,200.00 D Lower by 3,200

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