20.

22.

Boripa Company has a Maintenance Department that services the equipment in only three operating departments: Cutting, Forming, and Painting Departments. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Data relating to the Maintenance Department costs are below: Variable costs Fixed costs Actual $44,683 $30,200 Budgeted $45,000 $18,400 Data for the three operating departments follow: Budgeted Machine Hours Actual Machine-Hours Long-run average Machine Hours Cutting 3,000 2,870 2,800 Forming 7,500 7,490 7,200 Painting 4,500 4,350 4,000 (Q) How much, if any, of the actual Maintenance Department costs should NOT be charged to the three operating departments for evaluation purposes? (A) $ Kitichai Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: $100 Selling price per unit Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs per year: Fixed manufacturing overhead Selling and administrative expense $9 $20 $11 $6 $45,000 $60,700 Production Sales 5,000 units 4,500 units (Q) What is net operating income under variable costing in the first year? (A) $