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Sound Design began business in Aug $2024.$It produces student grade violins for begininng violin students Use the following information to answer Questions $1$ through $5.$ Question $2$

Compute the variable cost of goods sold that will appear on the Sept $2024$ variable costing income statement.

$$206,000$

$$180,500$

$$152,000$

None of the above.

Question $3$

Compute the August $2024$ unit manufacturing cost for violins using absorption costing.

$$95\mathrm{.}00$

$$125\mathrm{.}00$

$$80\mathrm{.}00$

$$131\mathrm{.}00$

Sound Design began business in August $2024.$ It produces student$-$grade violins for beginning violin students. Each violin sells for $$190.$

The following data is from Sound Design's first two months of operations. The company uses the FIFO inventory method.

The company also noted the following:

Total fixed manufacturing overhead each month is $$90,000$

Total fixed marketing and admin expense each month is $$12,000.$

Question $1$

Assume Sound Design prepares its income statements using variable costing $($i$.$e$.$ the contribution margin format$).$ The total amount of

expense that appears below the contribution margin line of its August $2024$ income statement is $$102,000.$

True

False

Question $2$

Compute the variable cost of goods sold that will appear on the Sept $2024$ variable costing income statement.

$$206,000$

$$180,500$

$$152,000$

None of the above.

Question $3$

Compute the August $2024$ unit manufacturing cost for violins using absorption costing.

$$95\mathrm{.}00$

$$125\mathrm{.}00$

$$80\mathrm{.}00$

$$131\mathrm{.}00$

Question $4$

Assume Sound Design uses absorption costing to prepare its income statements. Compute the operating

income that Sound Design will report for August $2024.$

$$28,000$

$($$$26,000)$

None of the above.

$$52,000$

Question $5$

Continue to assume that Sound Design uses absorption costing to prepare its income statements. Compute the

amount of fixed cost included in the ending August $2024$ inventory.

$$150,000$

$$54,000$

$$61,200$

$$0$

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