Beginning fixed manufacturing overhead in inventory $95,000
Fixed manufacturing overhead in production 375,000
Ending fixed manufacturing overhead in inventory 25,000
Beginning variable manufacturing overhead in inventory $10,000
Variable manufacturing overhead in production 50,000
Ending variable manufacturing overhead in inventory 15,000
12. What is the difference between operating incomes under absorption costing and variable costing?
a. $65,000
b. $50,000
c. $40,000
d. $5,000
e. $70,000
13. What would be the estimated cost per unit if Potter Company expects to sell 2,000 units next year?
a. $300
b. $312
c. $370
d. $498
e. $500
14. What is the predicted indirect manufacturing labour cost if 160 machine-hours are budgeted and 170 are actually worked, assuming the estimated cost function is
y = $81.04 + 5.32x?
a. $985.44
b. $932.24
c. $904.40
d. $851.20
e. $81.04