Question 21 2. A pts Which of the following statements are true? I. A manufacturing company treats all its depreciation expense as a period cost. 11. Depreciation expense on equipment that a company uses in its selling and administrative activities is treated as a period cost. Only statement is true Only statement Il is true. Both of the statements are true. O Neither of the statements are true. Question 22 2Apts Palm Office Supply Company's budget for the month of October includes the following projections: beginning inventory of $270,000, inventory purchases of $420,000, and ending inventory of $360,000. Cost of goods sold is budgeted to be 75% of sales. What is the budgeted sales revenue for the month of October? 0 $420,000 0 $440,000 0 $480,000 $510,000 Question 23 2Apts Tuna Corporation originally budgeted the following amounts for the next fiscal year. Selling price, per unit Variable costs, per unit Fixed costs, total $61.00 $49.00 $1,260,000 Assume fixed costs increase by 20%. To maintain the original break-even level of sales in units, the new selling price per unit would have to be: O $68.00 O $62.50 O $62.20 O $52.50 O $62.20 O $63.40 . Orice applies by IT departe 120 Property tax on factyles 100 Depreciation computers and try legale Faced to make mening Shoes $15.00 Commissions paid to salesforce 17.500 Cardboard boxes used to package each pair of shoes 16250 Janitorial supplies used in factory 9625 Wages paid to factory supervisor S5030 Depreciation on the vehicles used by sales force 55.000 Utilities used to operate factory 53300 Property and casualty insurance on factory building 51.280 Compensation paid to CEO $21.000 Lubricants used in operating factory equipment S1300 Compensation paid to CEO Lubricants used in operating factory equipment 21.00 What are the company's total period costs for the month of October? 0 $42,500 O $41,250 $36,250 $31,250 Question 25 24 pts Bargain Textbook Company's income statement for the month of June is as folows $900,000 (630,000) $270,000 Sales Cost of goods sold Gross profit Selling and administrative expenses Selling expenses Administrative expenses Operating income (100,000) (104,000) \ (204,000) $66,000 Each textbook sells for $50. Variable selling expenses are $5 per book, and the remainder of the selling expenses are fixed. Variable administrative expenses are 4% of sales, and the remainder of the administrative expenses are fixed. Assume "Y" equals the total selling and administrative expenses and X equals the total number of books sold. What is the mixed cost formula for total selling and administrative expenses? Pachet sets for 350 Viewing remainder of the selling sperm wel het sales, and the remainder of the administre des the total selling and admitted the role sold. What is the control for total selling and OY-578.000 $7X OY$78,000 35X OY-$500.000 50 OY-$100.000 $7X
