Question #1

Favaz began business at the start of this year and had the following costs:

variable manufacturing cost per unit, $8;

fixed manufacturing costs, $60,000;

variable selling and administrative costs per unit, $1;

and fixed selling and administrative costs, $307,000.

The company sells its units for $49 each. Additional data follow:

Planned production in units 10,000

Actual production in units 10,000

Number of units sold 9,500

There werenovariances.

The income (loss) under variable costing is:

Choose and answer:

• $13,000.
• None of the answers is correct.
• $(8,500).
• $16,000.
• $14,000.

Questions #2

ProTech began business at the start of the current year. The company planned to produce 40,000 units, and actual production conformed to expectations. Sales totaled 35,000 units at $42 each. Costs incurred were:

Variable manufacturing overhead per unit$18

Fixed manufacturing overhead277,000

Variable selling and administrative cost per unit8

Fixed selling and administrative cost per unit172,000

If there werenovariances, the company's absorption-costing income would be:(Round your intermediate calculations to 3 decimal places.)

Select an answer:

• $145,625.
• $560,000.
• None of the answers is correct.
• $156,125.
• $70,625.

Please help me identify the answers and how you came to the answer! Thanks!