1A) Sophie Corporation recently produced and sold 107,000 units. Fixed costs at this level of activity amounted to $55,300; variable costs were $107,000. How much cost would the company anticipate if during the next period it produced and sold 116,000 units?

1. $162,300
2. $165,000
3. $171,300
4. $172,300
5. None of the answers are correct

1B) Blakely charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year:

Budgeted manufacturing overhead: $550,000

Actual manufacturing overhead: $480,000

Budgeted machine hours: 25,000

Actual machine hours: 20,000

Overhead applied to production totaled:

1. $384,000
2. $440,000
3. $600,000
4. $687,500
5. Some other amount

1C) Dane Company has a break-even point of 85,000 units. If the firm's sole product sells for $35 and fixed costs total $425,000, the variable cost per unit must be:

1. #40
2. Am amount other than $10, $30, or $38, but one that can be derived based on the information presented
3. An amount that cannot be derived based on the information presented
4. $38
5. $10

1D) Collins Company, which pays a 13% commission to its salespeople, reported sales revenues of $350,000 for the period just ended. If fixed and variable sales expenses totaled $70,000, what would these expenses total at sales of $250,000?

1. $50,000
2. $57,000
3. $32,500
4. $24,500
5. None of the answers is correct

1E) Total costs are $220,000 when 25,000 units are produced; of this amount, variable costs are $70,000. What are the total costs when 28,000 units are produced?

1. $246,000
2. $238,000
3. $228,400
4. Total costs cannot be calculated on the information presented
5. None of the answers is correct

1F) A company has fixed costs of $700 and a per-unit contribution margin of $6. Which of the following statements is true?

1. Each unit contributes $6 toward covering the fixed costs of $700
2. The situation described is not possible and there must be an error
3. Once the break-even point is reached, the company will increase income at the rate of $6 per unit
4. The firm will definitely lose money in this situation
5. Each unit contributes $6 toward covering the fixed costs of $700 and once the break-even point is reached, the company will increase income at the rate of $6 per unit