[12] Liedholm Company had net operating income of 125,000 using variable costing and 105,000 using absorption costing. Variable production costs were 20 per unit. Total fixed manufacturing overhead was 176,000 and 11,000 units were produced. During the year, the inventory level: a) Increased by 1,000 units b) Increased by 1,250 units c) Decreased by 1,000 units d) Decreased by 1,250 units 3 Marks [13] Seedorf International has 3 divisions. The following budgeted data are available: Sales Selling price Germany 2,500 units Italy 2,500 units Ireland 2,500 units 80 per unit 85 per unit 90 per unit Variable expenses 35 per unit 40 per unit Fixed expenses 37,500 40,000 38 per unit 50,000 If the unit contribution margin is increased by 10%, the total fixed expense is decreased by 20%, and all other data remain as in the budget, the net operating income for the Irish division will be: a) 103,500 [14] b) 103,000 c) 98,000 d) 99,750 3 Marks Department C is the second of three sequential processes in a company that uses the weighted-average method in its process costing system. All materials are added at the beginning of processing in Department C. During September, Department C collected the following data: Units Labour & Overhead Work in process, September 1 16,000 60% Units started 50,000 Completed and transferred 40,000 Work in process, September 30 26,000 20% Labour & Costs for September: Transferred in Materials Overhead Work in process, Sept. 1 42,430 22,000 Added during the month 76,370 110,000 49,920 311,680 The cost per equivalent unit for labour and overhead was: a) 6.90 b) 5.95 c) 5.13 d) 8.00 3 Marks