23.

Carr Company produces a single product. Last year, Carr manufactured 29,650 units and sold 24,600 units. Production costs for the year were as follows:

Fixed manufacturing overhead	$563,350
Variable manufacturing overhead	$243,130
Direct labor	$145,285
Direct materials	$222,375

Sales were $1,070,100, for the year, variable selling and administrative expenses were $140,220, and fixed selling and administrative expenses were $210,515. There was no beginning inventory. Assume that direct labor is a variable cost.

Under absorption costing, the ending inventory for the year would be valued at: (Do not round intermediate calculations.)

a) $261,480

b) $227,480

c) $199,980

d) $269,980

25.

Pong Incorporated's segmented income statement for the most recent month is given below.

	Total	Store A	Store B
Sales	$153,600	$60,200	$93,400
Variable expenses	59,054	30,100	28,954
Contribution margin	94,546	30,100	64,446
Traceable fixed expenses	69,200	21,000	48,200
Segment margin	25,346	$9,100	$16,246
Common fixed expenses	23,300
Net operating income	$ 2,046

If Store B sales increase by $41,900 with no change in fixed expenses, the overall company net operating income should:

a) increase by $8,380

b) increase by $25,140

c) increase by $28,911

d) increase by $4,190