1. Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for the last five months of operations. Using the least-squares regression method, the estimated total fixed cost per month for maintenance is closest t

1)		$470
2)		$416
3)		$400
4)		$378

2. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the net operating income for the month under variable costing?

1)		$15,000
2)		$12,100
3)		$2,900
4)		$5,300

3. Cowles Corporation, Inc. makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is as follows: The company wants to maintain monthly ending inventories of Material K equal to 30% of the following month's production needs. On July 31, this requirement was not met because only 3,500 yards of Material K were on hand. The cost of Material K is $0.80 per yard. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year. The desired ending inventory of Material K for September is:

1)		12,750 yards
2)		12,500 yards
3)		13,050 yards
4)		12,150 yards