Question 2(1 point)

Reference: 08-26

Khanam Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price$97Units in beginning inventory500Units produced8,400Units in ending inventory400Variable costs per unit:Direct materials$20Direct labour$37Variable manufacturing overhead$1Variable selling and administrative$11Fixed costs:Fixed manufacturing overhead$67,200Fixed selling and administrative$161,500The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

What is the amount of fixed overhead released under absorption costing?

Question 2 options:

A)

$67,200

B)

$4,000

C)

$0

D)

$3,200