1) How is operating income affected if the number of units sold exceeds the number of units produced?

A.Operating income would be lower under a variable costing income statement.

B.Operating income would be higher under an absorption costing income statement.

C.Operating income would be higher under a variable costing income statement.

D.Operating income would be the same under both a variable costing and absorption costing income statement.

2) Maintenance costs at Seaside Manufacturing over the past six months are listed in the following table.

Month	Maintenance cost	Machine hours
January	$13,600	15,500
February	$14,720	16,900
March	$13,000	13,000
April	$14,480	16,600
May	$15,000	18,000
June	$13,200	15,000

Using the highlowmethod, what would the total maintenance costs be if 17,500 machine hours were used? (Round any intermediary calculations to the nearest cent.)

A.$14,800

B.$8,000

C.$25,000

D.$ 7000