1. R Corporation has a $220 per unit sales price for its only product. Variable production costs per unit manufactured are $80. Variable selling and administrative expenses per unit sold are $25. Total fixed production costs are $280,000. Total fixed selling and administrative expenses are $95,000. During the period there were 10,000 units produced and 8,000 units sold. There were no beginning inventories. What is the net income for R Corporation using the absorption costing method?

A. $775,000 B. $545,000 C. $831,000 D. $601,000 E. $920,000

2. F Corporation applies $5 of overhead for each unit produced. Thus, it must keep track of both actual overhead incurred and the amount of overhead applied each period. In terms of journal entries, actual overhead amounts are _____ the Factory Overhead account and applied overhead amounts are _____ the Factory Overhead account.

A. credited to; debited to B. not recorded in; recorded in C. recorded as decreases to; recorded as increases to D. debited to; credited to