Answer the following questions using the information below:
Veach Corporation incurred fixed manufacturing costs of $6,000 during 2015. Other information for 2015 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 variable 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

Question

Quizplus · Accepted Answer

Under variable costing, all fixed manufacturing costs are expensed in the period incurred, regardless of the number of units produced or sold. Therefore, the total fixed manufacturing costs expensed on the income statement would be the entire $6,000 incurred during the year.

Answer the Following Questions Using the Information Below