A company has incurred the following total costs for its very first month of operations:
| Raw materials purchased |
$67,000 |
| Direct Labor |
$81,000 |
| Variable factory overhead |
$26,000 |
| Fixed factory overhead |
? |
| Variable selling and administrative |
$6,000 |
| Fixed selling and administrative |
$8,000 |
The company also reported the following information:
| Sales(1,600 units) |
$192,000 |
| Gross Margin |
$57,000 |
| Ending inventories |
|
| Raw materials |
$10,000 |
| Work-in-process |
none |
| Finished goods (in units) |
900 units |
How much fixed overhead cost is included in ending finished goods inventory under absorption costing?