1) If variable cost of goods sold totaled $66,520 for the year (16,630 units at $4 each) and the planned variable cost of goods sold totaled $93,870 (13,410 units at $7 each), the effect of the unit cost factor on the change in contribution margin is: a. $12,880 increase b. $49,890 decrease c. $12,880 decrease d. $49,890 increase

2) A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,600 units): Direct materials $183,200 Direct labor 225,100 Variable factory overhead 266,400 Fixed factory overhead 103,700 $778,400 Operating expenses: Variable operating expenses $132,100 Fixed operating expenses 49,100 181,200 If 2,000 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? a. $76,680 b. $88,455 c. $109,045 d. $91,682

3)A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,700 units): Direct materials $175,000 Direct labor 222,800 Variable factory overhead 253,900 Fixed factory overhead 93,000 $744,700 Operating expenses: Variable operating expenses $131,100 Fixed operating expenses 42,900 174,000 If 1,500 units remain unsold at the end of the month and sales total $1,185,000 for the month, what would be the amount of income from operations reported on the variable costing income statement? a. $47,225 b. $313,584 c. $66,572 d. $53,964

4)The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $24.00 $10.00 Unit operating expenses of the period 8.00 3.00 What would be the effect on income from operations if absorption costing is used rather than variable costing? a. $104,000 increase b. $80,000 decrease c. $104,000 decrease d. $80,000 increase