Answer the Following Questions Using the Information Below:
Queanbeyan Company

Multiple Choice

Answer the following questions using the information below:
Queanbeyan Company incurred fixed manufacturing costs of $7200 during 2018.Other information for 2018 includes:
The budgeted denominator level is 800 units.
Units produced total 1000 units.
Units sold total 950 units.
Beginning inventory was zero.
The fixed manufacturing cost rate is based on the budgeted denominator level.Manufacturing variances are closed to cost of goods sold.
-Woggoon Nature Corporation has provided the following information:
$\begin{array}{lr}\text { Beginning fixed manufacturing overhead in inventory } & \$ 60000 \\\text { Ending fixed manufacturing overhead in inventory } & 45000 \\\text { Beginning variable manufacturing overhead in inventory } & \$ 30000 \\\text { Ending variable manufacturing overhead in inventory } & 14250\\\\\text { Fixed selling and administrative costs } & \$ 724000 \\\text { Units produced } & 5000 \text { units } \\\text { Units sold } & 4800 \text { units }\end{array}$
What is the difference between operating profits under absorption costing and variable costing?

A) $750
B) $7500
C) $15 000
D) $30 750