1.

Three costs incurred by Pitt Company are summarized below:

1,000 units

2,000 units

$10,000

$15,000

$21,000

$21,000

$16,000

$32,000

Which of these costs are variable? A,B and C; A and B; A only or C only

2. Bubba's Steakhouse has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: Materials $4,080; hourly labor (variable), $5,200; rent fixed, $1,650; depreciation, $660; and other fixed costs, $450. Each steak dinner sells for $13.80 each. How much would Shula's profit increase if 10 more dinners were sold?

3.

Belfont Company produces door stoppers. August product costs are below:

Door Stoopers produced

80,000

Direct Materials (variable)

$20,000

Direct Labor (variable)

$40,000

Supplies (variable)

20,000

Supervision (fixed)

$27,500

Depreciation (fixed)

$23,100

Other (fixed)

5,400

In September, Bellfont expects to produce 100,000 door stoppers. Assuming no structural changes, what is Belfont's production cost per door stopper for September?

4.

Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were:
Material cost	$4,770
Labor Cost	$2,960
Rent	$1,500
Depreciation	$2,500
Other fixed costs	$3,200
Materials and labor are the only variable costs. If production and sales are budgeted to change to 100 chairs in August. How much is the expected total variable cost on the August budget?
5. ry-All plans to sell 1,300 carriers next year and has budgeted sales of $46,000 and profits of $22,000. Variable costs are projected to be $20 per unit. Michael Co. offers to pay $23,800 to buy 520 unites from Carry-ALL. Total fixed costs are $7,000 per year. This offer does not affect Carry-ALL's other planned operations. The incremental revenues for this situation are: