Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 28,200 units. June and July sales are estimated to be 282,000 and 292,000 units, respectively. Trago assigns variable overhead at a rate of $2.00 per unit of production. Fixed overhead equals $402,000 per month. Compute the number of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for month of June.

$966,000.

$968,000.

$566,000.

$978,000.

$986,000.

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $6 per unit, Direct labor, $4 per unit, Variable overhead, $5 per unit, and Fixed overhead, $220,000. The company produced 22,000 units, and sold 16,000 units, leaving 6,000 units in inventory at year-end. What is the value of ending inventory under variable costing?

$90,000

$150,000

$60,000

$220,000

Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:

	Black Division	Navy Division
Sales (net)	$800,000	$390,000
Salary expense	27,000	47,000
Cost of goods sold	100,000	158,000

The Black Division occupies 36,000 square feet in the plant. The Navy Division occupies 54,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $90,000. Compute departmental income for the Black and Navy Divisions, respectively. (Do not round your intermediate computations)

$637,000; $131,000.

$773,000; $343,000.

$73,000; $156,000.

$73,000; $185,000.

$700,000; $232,000.