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 budgeted denominator level is 1,000 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.
-The production-volume variance is
A) $2,000.
B) $900.
C) $2,400.
D) $0.
E) $1,500.
Correct Answer:
Verified
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