30. A. Jase Manufacturing Co.'s static budget at 8,000 units of production includes $32,000 for direct labor and $3,200 for electric power. Total fixed costs are $41,700. At 10,100 units of production, a flexible budget would show

A.variable costs of $44,440 and $41,700 of fixed costs , B.variable costs of $44,440 and $52,646 of fixed costs , C.variable and fixed costs totaling $76,900 , D.variable costs of $35,200 and $41,700

B .S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventory of the manufactured product remained unchanged. The manufacturing costs were as follows:

	Variable	Fixed
Unit manufacturing costs of the period	$11.00	$7.00
Unit operating expenses of the period	3.00	2.50

Which of the following statements is true?

A.Net income under absorption costing will be $40,000 more than under variable costing. B.Net income will be the same under both variable and absorption costing.

C.Net income under variable costing will be $45,000 less than net income under absorption costing. D.The difference in net income cannot be determined.

C. Timmer Corporation just started business in January. There were no beginning inventories. During the year, it manufactured 11,300 units of product, and sold 9,000 units. The selling price of each unit was $25. Variable manufacturing costs were $3 per unit, and variable selling and administrative costs were $4 per unit. Fixed manufacturing costs were $22,600, and fixed selling and administrative costs were $8,700.

What would Timmer's net income be for the year using variable costing?

a.$104,560 b.$162,000 c.$139,400 d.$130,700

D. The level of inventory of a manufactured product has increased by 6,511 units during a period. The following data are also available:

	Variable	Fixed
Unit manufacturing costs of the period	$12	$7
Unit operating expenses of the period	$4	$5

What would be the effect on income from operations if absorption costing is used rather than variable costing?

a.$45,577 increase b.$78,132 increase c.$78,132 decrease d.$45,577 decrease

E .It would be acceptable to have the selling price of a product just above the variable costs and expenses of making and selling it in:

a.the long run b.the short run c.both the short run and long run d.neither in the short run nor the long run

F. If sales are $290,000, variable costs are 75% of sales, and operating income is $42,400, what is the operating leverage?

a.1.7 b.5.1 c.0.0 d.1.3

G. Spice Inc.'s unit selling price is $50, the unit variable costs are $35, fixed costs are $100,000, and current sales are 10,400 units. How much will operating income change if sales increase by 5,200 units?

a.$156,000 decrease b.$234,000 increase c.$156,000 increase d.$78,000 increase

I. Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks were manufactured at a total cost of $84,200. In the month of lowest production the company made 1,290 desks at a cost of $64,600. Using the high-low method of cost estimation, total fixed costs are

a.$19,600 b.$49,820 c.$84,200 d.$64,600