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Under variable costing, fixed manufacturing overhead isexpensed i

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Under variable costing, fixed manufacturing overhead is:
expensed immediately when incurred.
never expensed.
applied directly to Finished-Goods Inventory.
applied directly to Work-in-Process Inventory.
treated in the same manner as variable manufacturing
overhead.
Solution
expensed immediately when incurred.
Reason - Variable costing states that all the fixed
overhead incurred during period should be charged in the
same period.i.e. Fixed cost shold not be carried in the
Finished good inventory. Under absorption costing fixed
overhead are being charged to WIP and Finished goods
inventory i.e. they are being included in WIP and FG.
Thus we can say that Fixed Manufacturing overhead are
expensed when incurred.ParticularsAmountSalesless
Variable costContributionLess Fixed CostProfit

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Under variable costing, fixed manufacturing overhead is: expensed immediately when incurred. never expensed. applied directly to Finished-Goods Inventory. applied directly to Work-in-Process Inventory. treated in the same manner as variable manufacturing overhead. Solution expensed immediately when incurred. Reason - Variable costing states that all the fixed overhead incurred during period should be charged in the same period.i.e. Fixed cost shold not be carried in the Finished good inventory. Under absorption costing fixed overhead are being charged to WIP and Finished goods inventory i.e. ...
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