Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Tunney Corporation incurred fixed manufacturing costs of $7,200 during 2011. Other information for 2011 includes:
The fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.
-Under absorption costing, the production-volume variance is:

A) $450
B) $1,350
C) $1,800
D) 0