Question

Emeka Company has provided the following​ information: Sales price per unit $42 Variable cost per unit...

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, calculate​ Tentacle's total fixed costs.

A. $43,200

B. $66,200

C.$61,200

D. $301,200

Titanic Roofing Company has estimated the following amounts for its next fiscal​ year:

Total fixed costs

$900,000

Sale price per unit

40

Variable cost per unit

25

If the company spends an additional $35,000 on​ advertising, sales volume would increase by

3,000   units. Before the​ change, the​ company's sales level exceeds the breakeven point. What effect will this decision have on the operating income of​ Titanic?

A. Operating income will increase by $45,000.

B. Operating income will increase by$10,000.

C. Operating income will increase by $120,000.

D. Operating income will decrease by $10,000.

The management of Guardian Fire Alarms has calculated the following​ variances:

Direct materials cost variance

$8,000 U

Direct materials efficiency variance

35,000 F

Direct labor cost variance

16,000 F

Direct labor efficiency variance

12,500 U

Total variable overhead variance

8,000 F

Total fixed overhead variance

4,500 F

What is the total direct materials variance of the​ company?

A.$8,000 F

B. $3,500 F

C.$12,500 F

D. $27,000 F

Homework Answers

Answer #1
1 D.$26
Sales Price $42
Less: Variable Cost $16
Contribution margin $26
2 B. $66,200
Equipment depreciation $23,000
Factory insurance $11,000
Factory​ manager's salary $11,200
Janitor's salary $5,000
Property taxes $16,000
Total fixed costs $66,200
3 B. Operating income will increase by$10,000
Units         3,000
Sales Price $40
Less: Variable Cost $25
Contribution margin $15 $45,000
Less: Fixed Cost $35,000
Operating income $10,000
4 D. $27,000 F
The total direct materials variance $27,000
($8,000 U + $35,000 F)
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Young Company has provided the following information: Price per unit $40 Variable cost per unit 12...
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,...
#6 Schwiesow Corporation has provided the following information: Cost per Unit Cost per Period Direct materials...
#6 Schwiesow Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.05 Direct labor $ 3.50 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 11,000 Sales commissions $ 1.00 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 5,500 For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to: $5,500 $8,300 $12,500 $7,000 #3 Kesterson Corporation has provided the following information: Cost per...
Calculate the total variable cost per unit. Variable cost per unit Calculate the total fixed expense...
Calculate the total variable cost per unit. Variable cost per unit Calculate the total fixed expense for the year. Total fixed expense for the year Operating income Operating loss Sales Total contribution margin Total fixed cost Total variable cost Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product costs include: Direct materials per helmet $ 30 Direct labor per helmet 8 Variable factory overhead per helmet 4 Total fixed factory overhead 20,000 Variable...
Paney Company makes and sells calendars. The information on the cost per unit is as follows:...
Paney Company makes and sells calendars. The information on the cost per unit is as follows: Direct materials $1.50 Direct labor 1.20 Variable overhead 0.90 Variable marketing expense 0.40 The fixed marketing expense totaled $13,000, and the fixed administrative expense totaled $35,000. The price per calendar is $10. How many calendars must Paney sell next year to earn an operating income of $24,600? a. 4,100 b. 18,150 c. 12,000 d. 8,000 e. 12,100
The management of Watchdog Security Systems has calculated the following​ variances: Direct materials cost variance $10,000...
The management of Watchdog Security Systems has calculated the following​ variances: Direct materials cost variance $10,000 U Direct materials efficiency variance 38,000 F Direct labor cost variance 16,000 F Direct labor efficiency variance 12,500 U Total variable overhead variance 7,500 F Total fixed overhead variance 3,500 F What is the total direct labor variance of the​ company? A $28,500 F B. $11,000 F C. $3,500 F D. $16,000 F Accurate Tax Returns budgets two direct labor hours for every tax...
In 2017, X Company had the following selling price and per-unit variable cost information: Selling Price...
In 2017, X Company had the following selling price and per-unit variable cost information: Selling Price 165 Variable manufacuting costs 89 Variable selling and administrative costs 13 In 2017, total fixed costs were $679,000. In 2018, there are only two expected changes. Direct material costs are expected to increase by $8 per unit, and fixed selling and administrative costs are expected to increase by $10,000. What must unit sales be in order for X Company to break even in 2018
Titanic Roofing Company has estimated the following amounts for its next fiscal​ year: Total fixed costs...
Titanic Roofing Company has estimated the following amounts for its next fiscal​ year: Total fixed costs $900,000 Sale price per unit 40 Variable cost per unit 25 If the company spends an additional $35,000 on​ advertising, sales volume would increase by 3,000  units. Before the​ change, the​ company's sales level exceeds the breakeven point. What effect will this decision have on the operating income of​ Titanic? A. Operating income will increase by $45,000 B. Operating income will increase by $10,000...
Bellucci Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Bellucci Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.30 Direct labor $ 3.45 Variable manufacturing overhead $ 1.35 Fixed manufacturing overhead $ 103,200 Sales commissions $ 1.10 Variable administrative expense $ 0.65 Fixed selling and administrative expense $ 38,400 The incremental manufacturing cost that the company will incur if it increases production from 8,000 to 8,001 units is closest to (assume that the increase is within the relevant range): Multiple Choice $28.45...
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:
Bellucci Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Bellucci Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.90 Direct labor $ 3.90 Variable manufacturing overhead $ 1.40 Fixed manufacturing overhead $ 102,850 Sales commissions $ 1.00 Variable administrative expense $ 0.70 Fixed selling and administrative expense $ 37,400 The incremental manufacturing cost that the company will incur if it increases production from 8,500 to 8,501 units is closest to (assume that the increase is within the relevant range):
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT