Question

Serrato Manufacturing Company had the following projected information for 2021. Serrato expects to produce and sell...

Serrato Manufacturing Company had the following projected information for 2021. Serrato expects to produce and sell 10,870 units. The costs expected to be incurred include: direct labor of $10.55/unit; direct materials of $5.45/unit; variable overhead of $18.00/unit; fixed overhead of $215,000; variable selling of $3.00/unit; fixed selling of $90,000; fixed administrative of $120,000. Each unit would sell for $80.00. Serrato’s tax rate is 40%.

Be sure to show ALL your work with formulas, if needed, to receive full credit for a correct answer.

What is the margin of safety in sales dollars?  (3 pts.)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In 2018, X Company expects to produce and sell 62,000 units of its only product for...
In 2018, X Company expects to produce and sell 62,000 units of its only product for $34.14. The following are budgeted variable costs per unit: Direct materials $4.98 Direct labor 5.19 Variable overhead 4.78 Variable selling and administrative 5.31 Total 20.26 Budgeted fixed overhead for 2018 is $181,040, and budgeted fixed selling and administrative expenses are $173,600. What is X Company's budgeted contribution margin rate for 2018?
Malfoy has the following information available: Direct Materials $18.00 per unit; Direct labor $32.00 per unit;...
Malfoy has the following information available: Direct Materials $18.00 per unit; Direct labor $32.00 per unit; Variable Overhead $6.00 per unit; Variable Selling & Administrative $4.00 per unit; Fixed overhead costs $600,000 annually; and fixed selling and administrative costs $150,000 annually. Selling price is $80.00 per unit. Malfoy is currently selling 50,000 units. An assistant manager claims that if selling price were decreased by $5 per unit, the units sales could be increased by 20,000 units, but fixed costs would...
Question 2 In the coming year, Power Company expects to sell 70,000 units of product X...
Question 2 In the coming year, Power Company expects to sell 70,000 units of product X at RM13 each. Power Controller provided the following for the coming year. Units of production 110,000 Direct material per unit RM4.50 Direct labour per unit RM3.00 Variable overhead per unit RM1.50 Variable selling expenses per unit RM1.10 Total fixed overhead RM132,000 Total fixed selling expenses RM30,000 Total fixed administrative expenses RM15,000 Required: (a) Calculate the cost of one unit of product X under absorption...
Your company had the following projected unit sales for 2021: 2021 quarter 1: 59,600units 2021 quarter...
Your company had the following projected unit sales for 2021: 2021 quarter 1: 59,600units 2021 quarter 2: 21,300 units 2021 quarter 3: 48,300 units 2021 quarter 4: 54,500 units 2022 quarter 1: 43,400 units -each unit produced needs 5 pounds of direct materials. The company had 29000 pounds of direct materials in its ending inventory on decmeber 31, 2019. The company prefers to keep 15000 pounds of direct materals in ending inventory. -the company had 6500 units in its ending...
Sparn Limited incurs the following costs to produce and sell a single product:   Variable costs per...
Sparn Limited incurs the following costs to produce and sell a single product:   Variable costs per unit:      Direct materials $ 10      Direct labour 5      Variable manufacturing overhead 2      Variable selling and administrative expenses 4   Fixed costs per year:      Fixed manufacturing overhead 90,000      Fixed selling and administrative expenses 300,000 During the last year, 30,000 units were produced and 25,000 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $85,000 for the 5,000...
Lagle Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Lagle Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 5.30 Direct labor $ 4.00 Variable manufacturing overhead $ 1.45 Fixed manufacturing overhead $ 8,500 Sales commissions $ 1.90 Variable administrative expense $ 0.35 Fixed selling and administrative expense $ 7,200 For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:
[The following information applies to the questions displayed below.] Martinez Company’s relevant range of production is...
[The following information applies to the questions displayed below.] Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit Direct materials $ 5.50 Direct labor $ 3.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 14. If 11,000...
Calla Company produces skateboards that sell for $65 per unit. The company currently has the capacity...
Calla Company produces skateboards that sell for $65 per unit. The company currently has the capacity to produce 90,000 skateboards per year, but is selling 81,500 skateboards per year. Annual costs for 81,500 skateboards follow. Direct materials $ 937,250 Direct labor 643,850 Overhead 947,000 Selling expenses 553,000 Administrative expenses 467,000 Total costs and expenses $ 3,548,100 A new retail store has offered to buy 8,500 of its skateboards for $60 per unit. The store is in a different market from...
1. Granite Company uses a job-order costing system. The company applies manufacturing overhead to jobs using...
1. Granite Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and 16,000 hours respectively, for the year. At the end of the year, it was determined that the company actually worked 15,000 direct labor-hours for the year, and incurred $78,000 in actual manufacturing overhead costs. In June, Job #315 was completed. Materials costs on the...
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in...
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $55 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $50,500. Required: 1. Calculate the degree of operating leverage. (Round your answer to the nearest tenth.) Impact of Increased Sales on Operating...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT