Answer questions 1-2 using the information below:

Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Budgeted monthly production is 2,500 units. The production volume variance is written off to the cost of goods sold account. Other information for the month includes:

Variable manufacturing costs	$20.00 per unit
Variable marketing costs	$ 3.00 per unit
Fixed manufacturing costs per month	$ 17,500
Administrative expenses, all fixed	$15.00 per unit

What is cost of goods sold using variable costing?

Group of answer choices

$47,250

$35,000

$40,000

$54,000

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Question 21 pts

What is cost of goods sold using absorption costing?

Group of answer choices

$47,250

$60,750

$50,750

$48,500

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Question 31 pts

Wayne Corporation manufactures two models of computer desks, a standard and a deluxe model. The following activity and cost information has been compiled:

Activity	Budgeted overhead cost	Cost allocation base	Allocation base quantity
			Standard	Deluxe
Setup	$30,000	Number of Setups	20	30
Assembling	$36,000	Number of machine hours	10	20

Assuming an ABC system is used, what is the total amount of overhead costs assigned to the standard model?

Group of answer choices

$24,000

$32,000

$42,000

$36,000