6). If sales totaled $230,307 for the current year (10,967 units at $21 each) an

Question

6). If sales totaled $230,307 for the current year (10,967 units at $21 each) and planned sales totaled $152,472 (12,706 units at $12 each), the effect of the unit price factor on the change in sales is a:

a.$77,835 increase

b.$114,354 increase

c.$98,703 increase

d.$98,703 decrease

8). The level of inventory of a manufactured product has increased by 8,453 units during a period. The following data are also available:

What would be the effect on income from operations if variable costing is used rather than absorption costing?

a.$67,624 increase

b.$67,624 decrease

c.$92,983 decrease

d.$92,983 increase

13). A business operated at 100% of capacity during its first month and incurred the following costs:

If 1,500 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet?

a.$70,811

b.$50,865

c.$58,098

d.$60,000

15).The following data relate to direct labor costs for the current period:

What is the direct labor time variance?

a.$12,650 unfavorable

b.$11,770 favorable

c.$11,770 unfavorable

d.$12,650 favorable

18).The level of inventory of a manufactured product has increased by 8,292 units during a period. The following data are also available:

What would be the effect on income from operations if absorption costing is used rather than variable costing?

a.$82,920 decrease

b.$82,920 increase

c.$49,752 increase

d.$49,752 decrease

Variable Fixed Unit manufacturing costs of the period $14 $8 Unit operating expenses of the period $4 $3

Explanation / Answer

6)

Dear student, only one question is allowed at a time. I am answering the first question

Effect of change in price

= (Actual sales price – Budgeted sales price) x Actual Sales quantity

= ($21 - $12) x 10,967

= $98,703 increase

So, as per above calculations, option c is the correct option

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