1) A company has monthly fixed costs of $135,000. The variable costs are $5.00 per unit. If the sales price of a unit is $12.00 and we sell 7500 units, the company's average fixed costs per unit will be

A.$23.00 per unit.

B.$18.00 per unit.

C.$7.00 per unit.

D.$5.00 per unit.

2) Here are selected basic data for Wilson Company:

Estimated manufacturing overhead$243,750

Factory utilities$30,900

Estimated labor hours35,000

Indirect labor$22,600

Actual direct labor hours36,000

Sales commissions$54,600

Estimated direct labor cost$325,000

Factory rent$47,800

Actual direct labor cost$320,000

Factory property taxes$28,700

Factory depreciation$65,600

Indirect materials$33,300

If the company allocates overhead based on direct labor cost, what are the total actual manufacturing overhead costs?

A. $173,000

B. $283,500

C. $228,900

D. $260,900

3) XYZ uses job costing. Actual manufacturing overhead for the period is $20,300 while allocated manufacturing overhead is $18,200. What entry will close the manufacturing overhead balance?

A.Debit the Cost of Goods Sold account and credit the Finished Goods Inventory account for $2,100.

B.Debit the Manufacturing Overhead account and credit the Work-in-Process account for $2,100.

C.Debit the Cost of Goods Sold account and credit the Manufacturing Overhead account for $2,100.

D.Debit the Manufacturing Overhead account and credit the Cost of Goods Sold account for $2,100.

4) It costs Homer's Manufacturing $0.75 to produce baseballs, and Homer sells them for $5.00 apiece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays $12,000 a month rent for his factory and store, and also pays $77,000 a month to his staff in addition to the commissions. Homer sold 69,500 baseballs in June. If Homer prepares a traditional income statement for the month of June, what would be his gross profit?

A.$52,125

B.$295,375

C.$347,500

D.$399,625