During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $7 per unit, Direct labor, $5 per unit, Variable overhead, $6 per unit, and Fixed overhead, $350,000. The company produced 35,000 units, and sold 28,000 units, leaving 7,000 units in inventory at year-end. Income calculated under variable costing is determined to be $395,000. How much income is reported under absorption costing?

$395,000

$325,000

$745,000

$465,000

Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 28,000 units. June and July sales are estimated to be 280,000 and 290,000 units, respectively. Compute the number of units to be produced that would appear on the company's production budget for the month of June.

252,000 units.

309,000 units.

280,000 units.

287,200 units.

281,000 units.

Milltown Company specializes in selling used cars. During the month, the dealership sold 19 cars at an average price of $14,700 each. The budget for the month was to sell 17 cars at an average price of $15,700. Compute the dealership's sales price variance for the month.

$19,000 unfavorable.

$12,400 favorable.

$19,000 favorable.

$31,400 unfavorable.

$31,400 favorable.

A company's flexible budget for 47,000 units of production showed variable overhead costs of $68,150 and fixed overhead costs of $63,000. The company incurred overhead costs of $118,360 while operating at a volume of 39,000 units. The total controllable cost variance is:

$1,190 favorable.

$1,190 unfavorable.

$12,790 favorable.

$12,790 unfavorable.

$14,790 favorable.

Claremont Company specializes in selling refurbished copiers. During the month, the company sold 140 copiers for total sales of $308,000. The budget for the month was to sell 135 copiers at an average price of $2,400. The sales price variance for the month was.

$16,000 unfavorable.

$16,000 favorable.

$28,000 unfavorable.

$24,000 unfavorable.

$28,000 favorable.

Based on a predicted level of production and sales of 22,400 units, a company anticipates total variable costs of $100,800, fixed costs of $30,400, and operating income of $45,760. Based on this information, the budgeted amount of sales for 20,400 units would be:

$176,960.

$161,160.

$194,309.

$119,486.

$144,063.