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Freetown Corporation incurred fixed manufacturing costs of $30,000 during 2017. Other information for 2017 includes: The budgeted denominator level is 3,000 units. Units produced total
Freetown Corporation incurred fixed manufacturing costs of $30,000 during 2017. Other information for 2017 includes: The budgeted denominator level is 3,000 units. Units produced total 1,500 units. Units sold total 1,300 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. Operating income using absorption costing will be than operating income if using variable costing. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) A. $13,000 lower B. $2,000 higher C. $4,000 lower D. $17,000 higher
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