ACC Week 5 Assignment - Question 1 Meriden Company has a unit selling price of $570, variable costs per unit of $285, and fixed costs of $172,425.

ACC Week 5 Assignment

 

Question 1

Meriden Company has a unit selling price of $570, variable costs per unit of $285, and fixed costs of $172,425.

Compute the break-even point in units using the mathematical equation.

Break-even point

units

 

 

Question 2

For Turgo Company, variable costs are 57% of sales, and fixed costs are $170,400. Management’s net income goal is $88,890.

 

Compute the required sales in dollars needed to achieve management’s target net income of $88,890.

Required sales

$

 

Question 3

For Kozy Company, actual sales are $1,136,000 and break-even sales are $761,120.

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		$14,931
Direct labor		$25,239
Fixed manufacturing overhead		$10,260
Variable manufacturing overhead		$31,685
Selling costs		$20,550

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		$244,856
Fixed selling and administrative expenses		$247,303

Polk Company sells the fishing lures for $25.75. During 2012, the company sold 81,400 lures and produced 96,400 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

$

 

b) Prepare a variable costing income statement for 2012.

(c) Assuming the company uses absorption costing, calculate Polk’s manufacturing cost per unit for 2012.

(d) Prepare an absorption costing income statement for 2012.

 

Question 6

For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $322,000 budget; $332,800 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			$		$		$	Favorable Unfavorable Neither favorable nor unfavorable

Question 7

Gundy Company expects to produce 1,319,160 units of Product XX in 2012. Monthly production is expected to range from 76,890 to 114,490 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $2.

 

Prepare a flexible manufacturing budget for the relevant range value using 18,800 unit increments. (List variable costs before fixed costs.)

 

 

GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2012
Total Costs Fixed Costs Overhead Direct Materials Finished Units Supervision Total Fixed Costs Total Variable Costs Variable Costs Activity Level Depreciation Direct Labor
Total Variable Costs Finished Units Overhead Supervision Total Costs Total Fixed Costs Fixed Costs Direct Labor Variable Costs Activity Level Depreciation Direct Materials
Supervision Variable Costs Finished Units Activity Level Direct Labor Direct Materials Depreciation Total Costs Total Variable Costs Fixed Costs Overhead Total Fixed Costs
Fixed Costs Overhead Supervision Direct Labor Activity Level Total Costs Depreciation Total Fixed Costs Total Variable Costs Direct Materials Variable Costs Finished Units	$	$	$
Finished Units Direct Labor Variable Costs Direct Materials Fixed Costs Depreciation Total Fixed Costs Total Variable Costs Overhead Total Costs Supervision Activity Level
Direct Labor Total Fixed Costs Direct Materials Fixed Costs Total Variable Costs Variable Costs Finished Units Overhead Supervision Activity Level Total Costs Depreciation
Fixed Costs Finished Units Direct Labor Total Variable Costs Variable Costs Overhead Depreciation Supervision Total Costs Activity Level Direct Materials Total Fixed Costs	$	$	$
Supervision Finished Units Fixed Costs Overhead Depreciation Total Costs Total Fixed Costs Total Variable Costs Variable Costs Activity Level Direct Labor Direct Materials
Total Costs Fixed Costs Total Fixed Costs Supervision Total Variable Costs Variable Costs Activity Level Depreciation Direct Labor Finished Units Overhead Direct Materials
Variable Costs Activity Level Depreciation Total Costs Overhead Direct Labor Finished Units Direct Materials Total Fixed Costs Fixed Costs Supervision Total Variable Costs
Supervision Total Costs Fixed Costs Total Fixed Costs Total Variable Costs Overhead Variable Costs Activity Level Depreciation Direct Labor Direct Materials Finished Units
Activity Level Depreciation Direct Labor Direct Materials Total Costs Variable Costs Finished Units Fixed Costs Overhead Supervision Total Fixed Costs Total Variable Costs	$	$	$

 

 TUTORIAL PREVIEW

Question 7

Gundy Company expects to produce 1,319,160 units of Product XX in 2012.

 

Prepare a flexible manufacturing budget for the relevant range value using 18,800 unit increments. (List variable costs before fixed costs.)

Activity level
Finished units	76,890	95,690	114,490
Variable costs:
Direct materials ($4)	307,560	382,760	457,960

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