Neef Corporation has provided the following data for its two most recent years of operation:    Selling price per unit$84Manufacturing costs:  Variable manufacturing cost per unit produced:  Direct materials$12Direct labor$5Variable manufacturing overhead$4Fixed manufacturing overhead per year$432,000 Selling and administrative expenses:  Variable selling and administrative expense per unit sold$5Fixed selling and administrative expense per year$61,000  Year 1 Year 2Units in beginning inventory0 3,000Units produced12,000 9,000Units sold9,000 10,000Units in ending inventory3,000 2,0000 Which of the following statements is true for Year 1?

A. The amount of fixed manufacturing overhead deferred in inventories is $513,000
B. The amount of fixed manufacturing overhead released from inventories is $513,000
C. The amount of fixed manufacturing overhead deferred in inventories is $108,000
D. The amount of fixed manufacturing overhead released from inventories is $108,000


Answer: C

Business

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