On January 1, 2020, Jersey Manufacturers sold equipment that originally cost them $200,000 for $140,000. The equipment had accumulated depreciation of $65,000. How would the gain or loss on the sale of equipment be recorded on the Statement of Cash Flows?

A. Investing Activities; Gain on Sale of Equipment $140,000

B. Operating Activities; Gain on Sale of Equipment ($5,000)

C. Operating Activities; Loss on Sale of Equipment $75,000

D. Investing Activities; Loss on Sale of Equipment ($60,000)

The following information is given for Sweeney Company for the first 3 months of 2021:

	Cost	Activity
January	$7,000	1,250 DLHs
February	$5,240	700 DLHs
March	$5,800	900 DLHs

Using the high-low method, what are the variable cost per DLH (Direct Labor Hour) for Sweeney Company?

• A.

  $0.29/DLH

• B.

  $3.43/ DLH

• C.

  $2.80/DLH

• D.

  $3.20/DLH

Our business sells 7,000 hats annually for $25 each and each hat has a variable cost of $6. Total fixed costs for the year are $12,000. What is the total cost to produce 7,000 hats?

• A. $121,000
• B. $54,000
• C. $42,000
• D. $30,000