Accounting question

twomw1

1. For Turgo Company, variable costs are 63% of sales, and fixed costs are $177,300. Management’s net income goal is $78,740.

Compute the required sales in dollars needed to achieve management’s target net income of $78,740.

 

2. For Kozy Company, actual sales are $1,138,000 and break-even sales are $773,840.


Compute the margin of safety in dollars and the margin of safety ratio.
 
 
3.Montana Company produces basketballs. It incurred the following costs during the year.

Direct materials $14,709
Direct labor $25,321
Fixed manufacturing overhead $9,748
Variable manufacturing overhead $32,344
Selling costs $20,870

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

Total product costs 
$
4.
For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $310,800 budget; $339,100 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
 
$[removed]
 
$[removed]
 
$[removed]
 

Margin of safety 
$[removed]
 
Margin of safety ratio 
[removed]
 %

 

5.

Gundy Company expects to produce 1,227,600 units of Product XX in 2012. Monthly production is expected to range from 84,500 to 130,920 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $2.

Prepare a flexible manufacturing budget for the relevant range value using 23,210 unit increments. (List variable costs before fixed costs.)

GUNDY COMPANY
Monthly Flexible Manufacturing Budget
For the Year 2012
   
[removed]
[removed]
[removed]
   
$[removed]
$[removed]
$[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
$[removed]
$[removed]
$[removed]
   
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
$[removed]
$[removed]
$[removed]
 
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