45) Flexlux, Inc. reports the following information:

Units produced	520	units
Units sold	520	units
Sales price	$110	per unit
Direct materials	$40	per unit
Direct labor	$25	per unit
Variable manufacturing overhead	$30	per unit
Fixed manufacturing overhead	$14,000	per year
Variable selling and administrative costs	$15	per unit
Fixed selling and administrative costs	$25,000	per year

What is the unit product cost using variable costing?

A) $110

B) $92

C) $95

D) $15

46) When there is no beginning Finished Goods Inventory and all the goods that are produced are sold, the operating income ________.

A) will be higher under absorption costing than variable costing

B) will be lower under absorption costing than variable costing

C) will be higher than the gross profit under variable costing

D) will be the same for both absorption costing and variable costing

47) When production is greater than sales, the operating income will be higher under absorption costing than variable costing. Assume zero beginning and ending inventories. Which of the following gives the correct reason for the above statement?

A) All costs incurred have been recorded as expenses

B) A portion of the fixed manufacturing overhead is still in the ending Finished Goods Inventory account.

C) All selling and administrative expenses have been recorded as period costs.

D) Fixed manufacturing costs have not been considered when calculating the operating profits.