1.

Cost-volume-profit analysis is NOT useful in ________.

Select one:

A. optimizing production facilities

B. determining the appropriate sales mix

C. calculating operating expenses

D. setting selling prices

2.

Locklear, Inc. reports the following information for the year ended December 31:

Units sold	620	units
Sales price	$130	per unit
Direct materials	$28	per unit
Direct labor	$8	per unit
Variable manufacturing overhead	$13	per unit
Fixed manufacturing overhead	$12	per unit
Variable selling and administrative costs	$6	per unit
Fixed selling and administrative costs	$12,600	per year

The operating income calculated using variable costing and absorption costing amounted to $10,000 and $12,700, respectively. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year.

Select one:

A. $30,380

B. $7440

C. $10,140

D. $24,800