7.Craft Company produces a single product. Last year, the company had a net operating income of $93,600 using absorption costing and $83,100 using variable costing. The fixed manufacturing overhead cost was $6 per unit. There were no beginning inventories. If 24,400 units were produced last year, then sales last year were: 10. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $166 Units in beginning inventory 0 Units produced 11,200 Units sold 10,500 Units in ending inventory 700 Variable cost per unit: Direct materials $51 Direct labor $51 Variable manufacturing overhead $6 Variable selling and administrative $4 Fixed costs: Fixed manufacturing overhead $380,800 Fixed selling and administrative $168,000 What is the total period cost for the month under variable costing? 17.McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 30,000 machine-hours Order processing 375 orders Other N/A The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries $451,000 Depreciation 142,000 Occupancy 168,000 Total $761,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Total Wages and salaries 10% 80% 10% 100% Depreciation 20% 15% 65% 100% Occupancy 5% 75% 20% 100% The activity rate for the Fabrication activity cost pool is closest to: 24.On August 1, Shead Corporation had $30,400 of raw materials on hand. During the month, the company purchased an additional $80,000 of raw materials. During August, $85,100 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The credits to the Raw Materials account for the month of August total: 25.The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July. Corporate headquarters building lease $87,100 Cosmetics Department sales commissions--Northridge Store $5,870 Corporate legal office salaries $63,700 Store manager's salary-Northridge Store $14,900 Heating-Northridge Store $12,800 Cosmetics Department cost of sales--Northridge Store $38,800 Central warehouse lease cost $14,100 Store security-Northridge Store $19,700 Cosmetics Department manager's salary--Northridge Store $4,970 The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are direct costs of the Cosmetics Department? 27.Nikkel Corporation, a merchandising company, reported the following results for July: Sales $419,000 Cost of goods sold (all variable) $175,500 Total variable selling expense $23,600 Total fixed selling expense $17,200 Total variable administrative expense $15,400 Total fixed administrative expense $31,400 The gross margin for July is: