Question

Multiple Choice:

#1 Bryant Company sells glass vases at a wholesale price of $2.60
per unit. The variable cost of manufacture is $0.35 per unit. The
monthly fixed costs are $9,000. Bryant's current sales are 25,000
units per month. If Bryant wants to increase operating income by
25%, how many additional units, must Bryant sell? (Round your
intermediate calculations to two decimal places.)

a) 5,250 glass vases

b) 47,250 glass vases

c) 59,063 glass vases

d) 9,000 glass vases

#2 Paulson Company has provided the following information:

Price per unit | $50 |

Variable cost per unit | $15 |

Fixed costs per month | $16,000 |

What is the amount of sales in dollars required for Paulson to break even?

a) $53,333 b) $4,800 c) $16,000 d) $22,857

#3 Grimes Foods produces a gourmet salsa which sells for $28 per unit. Variable costs are $8 per unit, and fixed costs are $7,000 per month. If Grimes expects to sell 1,500 units, compute the margin of safety in dollars.

a) $9,200 b) $30,000 c) $32,200 d) $23,000

#4 Modiste, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $26,000. Additional estimated information is given below.

Totes | Sachels | |

Direct materials cost per unit | $32 | $45 |

Direct labor cost per unit | $55 | $63 |

Number of units | 510 | 390 |

Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.)

a) 49.41% b) 1.58% c) 94.50% d) 92.69%

#5 Which would be an appropriate cost driver for the warranty services activity?

a) number of purchase orders

b) direct labor hours

c) number of service calls

d) number of batches

Answer #1

Emeka Company has provided the following information:
Sales price per unit
$42
Variable cost per unit
16
Fixed costs per month
$18,000
Calculate the contribution margin per unit.
A.$58
B. $42
C. $16
D.$26
Tentacle Television Antenna Company provided the following
manufacturing costs for the month of June.
Direct labor cost
$132,000
Direct materials cost
84,000
Equipment depreciation
(straight−line)
23,000
Factory insurance
11,000
Factory manager's salary
11,200
Janitor's salary
5,000
Packaging costs
19,000
Property taxes
16,000
From the above information,...

1. Direct materials were $3 per unit, Direct labor was $2 per
unit, variable overhead was $1. Fixed costs were $1000. On a piece
of scrap paper do a flexible budget for 1000 and 1500 units.
Budgeted variable overhead for 1000 units is
Total cost for 1000 units is
Total costs for 1500 units is
Direct labor for 1500 units is
A. 1000
B. some other number
C. $10,000
D. $7000
E. $3000

1) Determining Budgeted Overhead The overhead application rate
for a company is $12 per unit, made up of $7 per unit of fixed
overhead and $5 per unit of variable over- head. Normal capacity is
10,000 units. In one month, there was a favorable flexible budget
variance of $2,500. Actual overhead for the month was $110,000 and
actual units produced were 15,125. Based on this information,
determine the amount of the budgeted overhead for the actual level
of production.
2)...

ABC Company produces a single unit that it sells for $20 per unit. ABC has
the capacity to produce 28,000 units each month. ABC is currently selling
19,000 units each month. The costs associated with each unit appears below:
direct materials $5.00
direct labor 2.50
variable overhead 1.00
fixed overhead 1.50
variable selling costs 4.00
fixed selling costs 0.75
ABC Company has received a special order from a customer who wants to
purchase 18,000 units at a reduced price of...

Young Company has provided the following information:
Price per unit
$40
Variable cost per unit
12
Fixed costs per month
$10,000
What is the contribution margin ratio?
A) 12%
B) 60%
C) 40%
D) 70%
First Buy Company provided the following manufacturing costs for
the month of June.
Direct labor cost
$136,000
Direct materials cost
80,000
Equipment depreciation (straight-line)
24,000
Factory insurance
19,000
Factory manager's salary
12,800
Janitor's salary
5,000
Packaging costs
18,800
Property taxes
16,000
From the above information,...

CBB Inc. makes multi-colored glass lens for the astrological
telescope industry and incurred the following:
Units Produced
20,000
Units Sold
16,000
Unit Sales Price
$
190
Manufacturing Cost Per Unit
Direct Material
$
20
Direct Labor
$
20
Variable Manufacturing Overhead
$
16
Fixed Manufacturing Overhead
($360,000/20,000)
=
$
18
Full Manufacturing Cost Per Unit
$
74
Nonmanufacturing Costs
Variable Selling Expenses
$
104,000
Fixed General and Administrative Costs
$
92,000
Income for CBB Inc's under variable costing?
Multiple Choice...

The standard variable overhead cost rate for the Gordon Company
is $ 12.25 per unit. Budgeted fixed overhead cost is $54,000. The
company budgeted 6,000 units for the current period and actually
produced 3,700 finished units. What is the fixed overhead volume
variance
Assume the allocation base for fixed overhead costs is the
number of units expected to be produced.
A. $8,675 favorable
B. $20,700 unfavorable
C. $8,675 unfavorable
D. $20,700 favorable

Gandolph Company manufactures a product with the following costs
per unit at the expected production of 30,000 units:
Direct materials
$ 4
Direct labor
12
Variable manufacturing overhead
6
Fixed manufacturing overhead
8
The company has the capacity to produce 40,000 units. The product
regularly sells for $40. A wholesaler has offered to pay $32 a unit
for 2,000 units.
If the firm is at capacity and the special order is accepted, the
effect on operating income would be
a....

Coat Co. sells product P at a price of $38 a unit. The per-unit
cost data are: direct materials $8, direct labor $10, and overhead
$12 (25% fixed and 75% variable). Coat has sufficient capacity to
accept a special order for 40,000 units just received. Variable
selling costs associated with this order would be $3 per unit.
1) Minimum selling price?
2) At a selling price of $33 per unit, operating income will
increase or decrease by how much?

Bulldog, Inc. has budgeted sales for the first quarter of the
next year to be 35,000 units. The inventory on hand at the
beginning of quarter is 10,000 units. The desired ending inventory
is 1,000 units. Calculate the budgeted production for the first
quarter.
A. 26,000 units
B. 25,000 units
C. 36,000 units
D. 1,000 units
Meridian Fashions uses standard costs for their manufacturing
division. The allocation base for overhead costs is direct labor
hours. From the following data, calculate...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 3 minutes ago

asked 6 minutes ago

asked 11 minutes ago

asked 18 minutes ago

asked 18 minutes ago

asked 31 minutes ago

asked 34 minutes ago

asked 44 minutes ago

asked 54 minutes ago

asked 55 minutes ago

asked 55 minutes ago

asked 1 hour ago