41. 1 . a business operated at 100% of capacity during its first month and incurred the following costs:

Production costs (20,200 units):
Direct materials	$177,700
Direct labor	221,800
Variable factory overhead	268,100
Fixed factory overhead	92,500	$760,100
Operating expenses:
Variable operating expenses	$132,800
Fixed operating expenses	40,800	173,600

If 1,900 units remain unsold at the end of the month and sales total $1,081,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement?

a.$210,094 b.$71,495 c.$62,794 d.$218,7954

2. At the beginning of the period, the Cutting Department budgeted direct labor of $140,000, direct materials of $169,000 and fixed factory overhead of $14,000 for 7,700 hours of production. The department actually completed 11,300 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting?

Round your final answer to the nearest dollar. Do not round interim calculations.

a.$474,013 b.$323,000 c.$329,545 d.$467,468

If sales are $800,000, variable costs are 61% of sales, and operating income is $224,000, what is the contribution margin ratio?

a.43% b.39% c.61% d.57%

3.If fixed costs are $868,000 and variable costs are 62% of sales, what is the break-even point in sales dollars?

a.$1,406,160 b.$2,284,211 c.$538,160 d.$3,152,211

4. When Isaiah Company has fixed costs of $138,600 and the contribution margin is $28, the break-even point is

a.10,970 units b.5,730 units c.9,900 units d.4,950 units

5. If fixed costs are $232,000, the unit selling price is $125, and the unit variable costs are $78, what is the break-even sales (units)?

a.4,936 units b.2,974 units c.1,856 units d.1,143 units

6.

Changes in the quantity of finished goods inventory, caused by differences in the levels of sales and production, directly affect the amount of income from operations reported under absorption costing.

True or False