Reference no: EM132752588

Freetown Corporation budgeted and incurred fixed manufacturing costs of $26,000 during 2017. Other information for 2017 includes:

Production was estimated to be 2,800 units in 2017.
Units actually produced in 2017 total 1,500 units.
Units sold total 1,300 units.
Beginning inventory was zero.

The company uses absorption costing and manufacturing variances are closed to cost of goods sold. Round intermediate calculations to the nearest cent.

Problem 1: The production volume variance is:

Group of answer choices

Option 1: $12,065 U

Option 2: $12,071 U

Option 3: $13,935 U

Option 4: $13,935 F

Problem 2: How much fixed manufacturing overhead is on the balance sheet at the end of 2017?

Group of answer choices

Option 1: $1,858

Option 2: $13,935

Option 3: $2,077

Option 4: Cannot be determined from data provided.