Morse Corporation incurred fixed manufacturing costs that actually totaled $7, 200 during 20x4. Other information for 20x4 includes: The budgeted denominator level is 800 units. Units produced total 1,000 units. Units sold total 950 units. Beginning inventory was zero. The company recently adopted a plan whereby the fixed manufacturing cost rate that will be used to allocate fixed overhead cost will be based on the budgeted denominator level. This rate is calculated to be $9 per unit. Manufacturing variance are closed to cost of goods sold. Finally, one of the key issues that the company would like to address is the production volume variance and how the difference between actual production and the denominator production level relates the usage for fixed costs. Under absorption costing, fixed manufacturing costs expensed on the income statement (excluding any adjustments for variances) total a. $8, 550 b. $9,000 $7, 200 d. zero. The company produced 1,000 units using the fixed overhead even though it estimated that it would only produce 800. Under absorption costing, the production-volume variance is a. $450. b. $1, 350. c. $1, 800. d. zero. Using the same information presented, under variable costing the fixed manufacturing costs expensed on the income statement (excluding any adjustment for variances) totals a. $8, 550 b. $7, 200. c. $9,000. d. zero