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 variable costing, the fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total:

A) $8,550
B) $7,200
C) $9,000
D) 0