1. WV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $74,000 annually and one salaried estimator who is paid $42,000 annually. The corporate office has two office administrative assistants who are paid salaries of $46,000 and $35,000 annually. The president's salary is $147,000. How much of these salaries are common fixed expenses?

Multiple Choice

• $147,000

• $228,000

• $81,000

• $288,000

2. The Southern Corporation manufactures a single product and has the following cost structure:

Variable costs per unit:
Production	$	36
Selling and administrative	$	15
Fixed costs per year:
Production	$	196,560
Selling and administrative	$	169,040

Last year, 8,190 units were produced and 7,990 units were sold. There was no beginning inventory.

The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:

Multiple Choice

• the same as absorption costing.

• $7,990 greater than under absorption costing.

• $7,990 less than under absorption costing.

• $4,800 less than under absorption costing.