1.Day Enterprises sells a single product for $37 per unit. Direct materials costs were $9 per unit, while direct labour and variable manufacturing overhead costs were $8 and $3 respectively. Fixed manufacturing overhead costs amount $24,000 per month. Variable selling costs are $5 per unit. Fixed selling costs are $9,000 per month. Last month, the company produced 10,000 units and sold 6,000 units. What is Day Enterprises operating income using variable costing?

A. $39,000

B. $52,600

C. $48,600

D. $45,400

2.A study has been conducted to determine if Product A should be dropped. Total sales of the product are $250,000 per year; total variable expenses are $100,000 per year. Total fixed expenses charged to the product are $120,000 per year. The company estimates that $50,000 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall operating income per year would change by how much?

A. A decrease of $80,000

B. An increase of $100,000

C. A decrease of $100,000

D. An increase of $80,000

3.MakTacks Company makes and sells a single product: Product T. Each unit of Product T requires 2.6 hours of labour at a labour rate of $14.25 per hour. MakTacks Company needs to prepare a Direct Labour Budget for the second quarter of next year. MakTacks has budgeted to produce 31,000 units of Product T in May. The finished goods inventories on May 1 and May 30 were budgeted at 350 and 900 units, respectively. What would be the budgeted direct labour costs incurred in June?

A. $1,148,550

B. $1,128,172.50

C. $1,172,632.50

D. $1,115,205

4.General Mattress (GM) Company sells mattresses at a regular price of $800. The total cost per unit is $700, which consists of $200 direct labor per unit, $250 direct materials per unit, $50 fixed overhead per unit, and $200 variable overhead per unit. A hotel chain offered to buy 1,000 mattresses from GM at a discounted price of $650. This is a one-time special order (i.e., a short-term decision), and GM has enough spare capacity to accommodate this order. If GM accepts the special order, GMs operating income will:

A. increase by $50,000

B. Remain the same

C. Decrease by $50,000

D. Decrease by $150,000