Attention Rick

Attention Rick

1. Meriden Company has a unit selling price of $750, variable costs per unit of $450, and fixed costs of $180,600.Compute the break-even point in units using the mathematical equation.

Break-even point			units

 

2. For Turgo Company, variable costs are 58% of sales, and fixed costs are $170,900. Management’s net income goal is $100,168.Compute the required sales in dollars needed to achieve management’s target net income of $100,168.

Required sales

$

 

3. For Kozy Company, actual sales are $1,131,000 and break-even sales are $689,910.Compute the margin of safety in dollars and the margin of safety ratio.

Margin of safety		$
Margin of safety ratio			%

Question 4

Montana Company produces basketballs. It incurred the following costs during the year.

Direct materials		$14,825
Direct labor		$25,934
Fixed manufacturing overhead		$9,919
Variable manufacturing overhead		$31,833
Selling costs		$20,513

What are the total product costs for the company under variable costing?

Total product costs

$

 

 

Question 5 Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs. Variable Cost per Unit Direct materials $7.73 Direct labor $2.52 Variable manufacturing overhead $5.92 Variable selling and administrative expenses $4.02 Fixed Costs per Year Fixed manufacturing overhead $241,046 Fixed selling and administrative expenses $247,303 Polk Company sells the fishing lures for $25.75. During 2012, the company sold 80,600 lures and produced 94,900 lures.

 

 

(a)   Assuming the company uses variable costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.) Manufacturing cost per unit $

 

Question 6

For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $324,100 budget; $328,600 actual.

Prepare a static budget report for the quarter.

MARIS COMPANY Sales Budget Report For the Quarter Ended March 31, 2012
Product Line		Budget		Actual		Difference
Garden-Tools		$		$		$

Question 7

Gundy Company expects to produce 1,272,360 units of Product XX in 2012. Monthly production is expected to range from 75,440 to 119,820 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $6, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $3.

Prepare a flexible manufacturing budget for the relevant range value using 22,190 unit increments. (List variable costs before fixed costs.)

GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2012

 

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