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10.

Buckeye Company has provided the following data for maintenance cost:

	Prior Year	Current Year
Machine hours	14,100	17,000
Maintenance cost	$28,200	$31,970

The best estimate of the cost formula for maintenance would be: (Do not round intermediate calculations. Round your Variable cost per unit to 2 decimal places.)

	$9,870 per year plus $1.30 per machine hour
	$28,200 per year plus $1.30 per machine hour
	$9,870 per year plus $.769 per machine hour
	$22,100 per year plus $.769 per machine hour

11.

Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.

Production volume	13,700	units	15,000	units
Direct materials	$911,050		$997,500
Direct labor	$239,750		$262,500
Manufacturing overhead	$1,008,400		$1,025,820

The best estimate of the total monthly fixed manufacturing cost is: (Do not round intermediate calculations.)

	$832,320
	$827,820
	$821,820
	$824,820

12.

Nikkel Corporation, a merchandising company, reported the following results for July:

Sales	$447,000
Cost of goods sold (all variable)	$170,500
Total variable selling expense	$ 20,100
Total fixed selling expense	$ 21,600
Total variable administrative expense	$ 8,500
Total fixed administrative expense	$ 31,300

The gross margin for July is:

	$195,000
	$247,900
	$394,100
	$276,500

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