Direct materials $14 Indirect materials (variable) 4 Direct labor 8 Indirect labor (variable) 6 Other variable factory overhead 10 Fixed factory overhead 28 Variable selling expenses 20 Fixed selling expenses 14 During the period, the company produced and sold 1,000 units. a. What is the inventory cost per unit using absorption costing? b. What is the inventory cost per unit using variable costing?
Assume a company had the following production costs. [pic] Under absorption costing, the total production cost per unit when 4,000 units are produced would be $22.50. True False 5. Given the following data, total product cost per unit under absorption costing is $9.14. [pic] True False 6.
Margin of Safety (DOLLARS) Budgeted – break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3.Compute the company’s margin of safety in units assuming the proposal is accepted. Margin of Safety (Dollars) 137500-58929= 78571 (Units) 78571/275= 286 4. Compute the increase or decrease in profit assuming the proposal is accepted, show the contribution Income Statement for current and proposed. Present Proposed Sales 100,000 137500 Variable expense 64000 80000 CM 36000 57500 Fixed cost 22500 244750 Net income 13500 32750 difference: 19250 4a. What is the operating leverage for the current and proposed?
Question : (TCO 7) An understanding of life-cycle costs can lead to 5. Question : (TCO 7) Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number
Part (b) Assume that 1,600 meals were served in January. Prepare a flexible budget for this level of activity. Part (c) Actual results for January appear below. Prepare a flexible budget performance report for the diner for January. |Revenue |$18,800 | |Cost of ingredients |5,200 | |Wages |7,200 | |Utilities |928 | |Rent |2,500 | GNB 13e Practice Exam Solutions – Chapter 10 1.