D SECTION 3 - Two (2) Short answer questions - Each worth 5 marks - Total 10 marks Q1. Simpson Company, which has only one product, has provided the following data concerning its most re $165 0 4,300 3,800 500 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $31 $43 $5 $8 $165,400 $80,200 a. Calculate the unit product cost for the month under variable costing? (2 marks) a Calculate the unit product cost for the month under variable costing? (2 marks) Show workings here: Type your final answer in this box: b. What was the operating income (loss) for the month under variable costing? (3 marks) Show workings here: Type your final answer in this box: Q2. Mississauga Hotel Inc. bases its budgets on guest days. The hotel's static budget for August appears bel 4,300 $41,280 40420 81,700 Budgeted number of guest-days Budgeted variable overhead costs: Supplies (@$9.60 per guest-day) Laundry (@$9.40 per guest-day) Total variable overhead cost Budgeted fixed overhead costs: Wages and salaries Occupancy costs Total fixed overhead cost Total budgeted overhead cost 57,190 52.030 109.220 $190,920 a. What is the expected total variable overhead cost at an activity level of 5,000 guest-days per month? (4 m Show workings here: Total budgeted overhead cost $190.920 a What is the expected total variable overhead cost at an activity level of 5,000 guest days per month? (4 m Show workings here: Type your final answer in this box: b. What is the expected total fixed overhead cost at an activity level of 5,500 guest-days per month? (1 mark Show workings here: Type your final answer in this box