Everest Co. uses a single plantwide factory overhead rate based on direct labor hours. Overhead costs would be overcharged to which of the following departments? Oa. a labor-intensive department Ob. a materials-intensive department Oc. a capital-intensive department Od. all of the abovewhich of the following terms is commonly used to describe the concept whereby the cost of manufactured products is composed of direct materials cost, direct labor cost, and variable factory overhead cost? 03. differential costing Ob. absorption costing Oc' variable costing Od. standard curl-mg The amount of income under absorption costing will equal the amount of income under variable costing when units manufactured Oa. equal units sold Ob. are less than units sold Oc. exceed units sold Od. are equal to or greater than units soldThe level of inventory of a manufactured product has increased by 7,843 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $14.00 $8.00 Unit operating expenses ofthe period 3.00 1.00 The effect on operating income if absorption costing is used rather than variable costing would be a 03. 562,?44increase Ob. 90,58? decrease Oc. 562344 decrease Od. S?D,53Finsrease A business operated at 100% of capacity.r during its rst month and incurred the following costs: Production costs (10,000 units]: Direct materials $1?0,000 Direct labor 360,000 Variable fauttor'yr overhead 190,000 Fixed factory overhead 50,000 $300,000 Operating expenses: Variable operating expenses $60,000 Fixed operating expenses 18,000 78,000 If 500 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is 03. 533,500 Ob. 542,300 Oc. 541,500 Od. 536,000 Under variable costing, which of the following costs would not be included in finished goods inventory? Oa. electricity used by factory machinery Ob. salary of factory supervisor Oc. steel costs for a machine tool manufacturer Od. wages of machine operatorA business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,000 units): Direct materials $180,000 Direct labor 240,000 Variable factory overhead 280,000 Fixed factory overhead 100,000 $800,000 Operating expenses: Variable operating expenses $130,000 Fixed operating expenses 50,000 180,000 If 1,500 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is Oa. $52,500 Ob. $60,000 Oc. $73,500 Od. $62,500Which of the following would be included in the cost of a product manufactured according to variable costing? Oa. office supply costs Ob. interest expense Oc. direct materials Od. sales commissionsA business operated at 100% of capacity during its first month, with the following results: Sales (103 units) $545,900 Production costs (129 units): Direct materials $73,908 Direct labor 18,870 Variable factory overhead 33,023 Fixed factory overhead 31,450 157,251 Operating expenses: Variable operating expenses $5,433 Fixed operating expenses 3,547 8,980 The amount of operating income that would be reported on the absorption costing income statement is Oa. $411,363 Ob. $440,021 Oc. $436,474 Od. $545,771A business operated at 100% of capacity.r during its first month, with the following results: Sales {120 units) $600,000 Production costs {150 units]: Direct materials $75,000 Direct labor 18,?50 Variable factor',f overhead 33,750 Fixed factory overhead 30,000 15?,500 Operating expenses: Variable operating expenses 55,010 Fixed operating expenses 4,270 9,280 ) The amount of contribution margin that would be reported on the variable costing income statement is a. 5590520 . 5488520 . $599,850 . 493,990