Advantage, Inc., a tennis equipment manufacturer, has variable costs of $0.40 per unit of product. In August, the volume of production was 28,000 units, and units sold were 20,200. The total production costs incurred were $31,700. What are the fixed costs per month?

A. $11,200

B. $20,500

C. $23,620

D. $3,700

Marciano Manufacturing uses a standard cost system. Standards for direct materials are as follows:

Direct materials (pounds per unit of output)	2
Cost per pound of direct materials	$5

The company plans to produce 3,500 units and has purchased on account 10,000 pounds of direct materials at a net cost of $45,000.

What is the journal entry to record this transaction?

A.

Raw Materials Inventory	45,000
Direct Materials Cost Variance	5,000
Accounts Payable		50,000

B.

Raw Materials Inventory	45,000
Direct Materials Cost Variance		5,000
Accounts Payable		40,000

C.

Raw Materials Inventory	50,000
Direct Materials Cost Variance		5,000
Accounts Payable		45,000

D.

Raw Materials Inventory	40,000
Direct Materials Cost Variance	5,000
Accounts Payable		45,000