1)Which of the following is true of variable accounting?

Group of answer choices:

It is required for external reporting to shareholders.

It includes fixed manufacturing overhead as an inventoriable cost.

It expenses administrative costs as cost of goods sold.

It treats direct manufacturing costs as a product cost.

2) SPY Company processes 30,000 gallons of direct materials to produce two products, Product X and Product Y. Product X, the byproduct, sells for $2 per gallon and Product Y, the main product, sells for $50 per gallon. The following information is for August:

ProductionSalesBeginning inventoryEnding Inventory

Product X (in gallons):6,0004,00002,000

Product Y (in gallons): 24,00024,00000

The manufacturing costs totaled $30,000.

How much is the cost of goods sold in August if byproducts are recognized in the general ledger at the point of sales?

Group of answer choices

$26,000

$18,000

$30,000

non of the answers.

$22,000

3) TSLA Industries provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments:

Support DepartmentsOperating Departments

PersonnelCafeteriaMaintenanceMachiningAssembly

Direct Costs: $32,000$20,000$20,000

Services Provided By:

Personnel10%20%30%40%

Cafeteria10%10%40%40%

Maintenance 10%20%50%20%

For the direct method, what proportion of Cafeteria costs will be allocated to the Machining Department?

Group of answer choices:

20%

40%

30%

none of the answers

50%