13)- 13) Yazzie, Inc. reports the following information for the year ended Decem

Question

13)- 13) Yazzie, Inc. reports the following information for the year ended December 31: 620 units $160 per unit $26 per unit $10 per unit $13 per unit $30 per unit $5 per unit Units sold Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs $14,200 per year The operating income calculated using variable costing and absorption costing amounted to $9300 and $11,400, respectively. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under variable costing for the year 2016. A) $18,600 B) $34,720 C) $20,700 D) $30,380

Explanation / Answer

income under Absoprtion costing 11,400 income reported under variable costing 9,300 fixed overhead deferred 2,100 fixed overhead for sold units (620*30)= 18600 Add :Fixed overhead deferred 2,100 FOH expensed under variable costing 20700 option C) $20,700 answer

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