1. Cost-volume-profit analysis is NOT useful in ________. Select one: A. optimiz

Question

1.

Cost-volume-profit analysis is NOT useful in ________.

Select one:

A. optimizing production facilities

B. determining the appropriate sales mix

C. calculating operating expenses

D. setting selling prices

2.

Locklear, Inc. reports the following information for the year ended December 31:

The operating income calculated using variable costing and absorption costing amounted to $10,000 and $12,700, respectively. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year.

Select one:

A. $30,380

B. $7440

C. $10,140

D. $24,800

Units sold 620 units Sales price $130 per unit Direct materials $28 per unit Direct labor $8 per unit Variable manufacturing overhead $13 per unit Fixed manufacturing overhead $12 per unit Variable selling and administrative costs $6 per unit Fixed selling and administrative costs $12,600 per year

Explanation / Answer

1 Cost-volume-profit analysis is NOT useful in calculating operating expenses 2 Total fixed manufacturing overhead expensed under absorption costing=620*12= $7440

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