QUESTION 7 Dream Thrum, Co. is expecting the following changes will occur during the upcoming period: The sales price will increase from $106 to $111 per unit Variable costs will increase from $36 to $45 per unit Fixed costs will decrease from $821,700 to $702,300 Sales volume will decrease from 17,000 to 15,000 units If all of these changes occur, by how much will net income change in the upcoming period as compared to the current net income (ignore taxes)? a. Decrease by $287,700 ob. Decrease by $111,400 OC. Decrease by $80,600 od. Increase by $80,600 o e. Increase by $111,400 QUESTION 8 Bitter Virtue, Co. is a manufacturer that uses a job order costing system. It uses a single, plantwide predetermined overhead rate, and applies overhead at a rate of 80% of direct labor dollars. During the period, the firm started and completed several jobs. The following information was obtained related to costs incurred during the period: Direct materials used: $145,000 Indirect materials used: $15,000 Direct labor used: $110,000 Indirect labor used: $25,000 Actual other factory overhead costs: $49,100 Calculate the amount of under-or overapplied overhead: O a. $49,100 underapplied. b. $1,100 overapplied. OC. $1,100 underapplied. od. $9,100 overapplied. o e. $9,100 underapplied. QUESTION 9 Ten Below, Inc. is a manufacturer that uses a job-order costing system. During the first period of operations, the firm started working on 3 jobs: L, S and W. Costs for these jobs are listed below: Job L Jobs Job W Costs incurred during the period Direct materials $94,600 $65,100 $113,900 Direct labor $50,000 $32,000 $60,000 Applied OH (160% of DL costs) $80,000 $51,200 $96,000 Status at the end of the period Finished (unsold) In process Finished (sold) As this is the first period of operations, assume the Work in process inventory account and the finished goods inventory account both had beginning balances of $0. What is the balance of the WIP inventory account and the Finished Goods inventory account as of the end of the period? a. WIP Inventory: $148,300; Finished Goods Inventory: $494,500 b. WIP Inventory: $372,900; Finished Goods Inventory: $0 OC. WIP Inventory: $148,300; Finished Goods Inventory: $224,600 d. WIP Inventory: $372,900; Finished Goods Inventory: $269,900 O e WIP Inventory: $148,300; Finished Goods Inventory: $269,900