Question

1- Costs for direct materials, direct labor and manufacturing overhead are assigned to each job. True or false

2- J&A Corporation has a monthly target operating income of $35,000. Variable expenses are 30% of sales and monthly fixed expenses are $7,000. What is the monthly margin of safety in dollars if the business achieves its operating income goal?

A) $60,000

B) $70,000

C) $50,000

D) $21,000

3- At Dwight Incorporated, total fixed and variable costs are $430,000 at a production level of 120,000 units. The company has total fixed costs of $235,000. The fixed cost per unit at a production level of 160,000 units is

A) $3.58

B) $1.96

C) 1.47

D) 1.83

4-The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year.

Selling price per unit

$ 8.10

Variable manufacturing costs per unit

$ 1.84

Variable selling and administrative expenses per unit

$ 4.55

Fixed manufacturing overhead​ (in total)

$ 80,000

Fixed selling and administrative expenses​ (in total)

$ 81,000

Units produced during the year

$550,000

Units sold during the year

$150,000

Using absorption costing, what is the operating income for the last year?(Round any intermediary calculations to the nearest cent)

A) 153,000

B) 1,680,000

C) 1,215,000

D) $750,000

5- During the year, the company produced and sold 40,000 units of product at a selling price of $10.42 per unit. There was no beginning inventory of the product at the beginning of the year.

Fixed costs:

Manufacturing - $115,000

Marketing - $20,000

Administrative - $17,000

Variable costs:

Manufacturing - $115,000

Marketing - $21,000

Administrative $38,000

What is the contribution margin per unit for Blaine Corporation?(Round any intermediary calculations to the nearest cent)

Answer 1