The level of inventory of a manufactured product has increased by 8,226 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $12.00 $6.00 Unit operating expenses of the period 2.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be an) Oa. $49,356 increase Ob. $57,582 decrease Oc. $57,582 increase Od. $49,356 decrease A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,400 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $184,800 234,900 260,200 104,800 $784,700 Operating expenses: Variable operating expenses 133,400 Fixed operating expenses 47,000 180,400 If 1,700 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is Oa. $75,142 Ob. $62,815 Oc. $89,167 Od. $72,499 Below is budgeted production and sales information for Flushing Company for the month of December. Product XXX Product zzz Estimated beginning inventory 28,200 units 19,800 units Desired ending inventory 34,200 units 15,400 units Region I, anticipated sales 321,000 units 280,000 units Region II, anticipated sales 198,000 units 147,000 units The unit selling price for product XXX is $5 and for product ZZZ is $14. Budgeted production for product XXX during the month is Oa. 513,000 units Ob. 553,200 units Oc. 525,000 units Od. 519,000 units Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs $155,900 $198,600 $210,200 Insurance expense** 860 860 860 Depreciation expense 2,010 2,010 2,010 Property tax expense*** 410 410 410 * Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $860 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). ***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are Oa. $119,505 Ob. $155,900 Oc. $116,925 Od. $137,703