Part 1: An income statement for Sam's Bookstore for the first quarter of the year is presented below:

Sam's Bookstore
Income Statement
For Quarter Ended March 31
Sales		$ 910,000
Cost of goods sold		530,000
Gross margin		380,000
Selling and administrative expenses
Selling	$ 113,000
Administrative	130,000	243,000
Net operating income		$ 137,000

On average, a book sells for $70. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed.

The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:Multiple Choice

• Y = $164,300 + $5.00X

• Y = $164,300 + $7.10X

• Y = $150,700 + $7.10X

• Y = $150,700 + $9.20X

  Part 2: Bakan Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.

  Production volume	11,100	units	12,100	units
  Direct materials	$ 95.70	per unit	$ 95.70	per unit
  Direct labor	$ 29.60	per unit	$ 29.60	per unit
  Manufacturing overhead	$ 73.30	per unit	$ 69.30	per unit

  The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.)

  Multiple Choice

• $162.80

• $150.20

• $160.30

• $125.30

Part 3:

Lagle Corporation has provided the following information:

	Cost per Unit	Cost per Period
Direct materials	$ 4.65
Direct labor	$ 3.50
Variable manufacturing overhead	$ 1.35
Fixed manufacturing overhead		$ 14,400
Sales commissions	$ 1.50
Variable administrative expense	$ 0.45
Fixed selling and administrative expense		$ 6,300

If 7,000 units are sold, the total variable cost is closest to:

Garrison 17e Rechecks 2020-09-09

Multiple Choice

• $66,500

• $105,050

• $80,150

• $80,500