1) Dr. peters performs a unique procedure for $400.00. The fixed costs are $8,000 and variable costs are $200.00 per procedure. What is the margin of safety in dollars assuming the procedure is performed 200 times? A) $80,000 B) $64,000 C) $40,000 D) $32,000

2) ABC Corporation is analyzing its account balances for 2020. As of the end of 2020, a debit balance of $4,000 remains in the Manufacturing Overhead account. What impact will this have on the financial statements? a) It will increase assets by $4,000 and have no effect on income. b) It will increase income by $4,000. c) It will reduce income by $4,000. d) It will decrease gross profit but have no effect on income.

3). ABC Design builds custom houses for individual buyers. On May 1, it had one job started with a beginning work-in-process balance of $76,000. During May, the job was finished and sold. Direct labour for the job in May was $75,000, and direct materials used were $67,000. Overhead is computed at a rate of 65% of direct labour. All sales have a markup of 40%. What was the selling price of the house? A) $82,862.50 B) $236,750.00 C) $262,087.50 D) $373,450.00