1) Baxter Company, which pays a 12% commission to its salespeople, reported sales revenues of $280,000 for the period just ended. If fixed and variable sales expenses totaled $70,000, what would these expenses total at sales of $260,000?

Multiple Choice

$31,200. $36,400. $65,000. $67,600. None of these.

2) Reynardo Company incurred $121,000 of depreciation for the year. Sixty percent relates to the firm's production facilities, and 40% relates to sales and administrative offices. If all items are handled in the proper manner, a review of the company's accounting records should reveal a:

Multiple Choice

debit to Depreciation Expense for $121,000.

debit to Manufacturing Overhead for $121,000.

debit to Manufacturing Overhead for $72,600.

debit to Work-in-Process Inventory for $48,400.

credit to Cash for $121,000.