1.) For Bob Company, variable costs are 61% of sales, and fixed costs are $171,000. Management’s net income goal is $91,899.

1.)For Bob Company, variable costs are 61% of sales, and fixed costs are $171,000. Management’s net income goal is $91,899.

Compute the required sales in dollars needed to achieve management’s target net income of $91,899.

2.)Bob 2 Company produces basketballs. It incurred the following costs during the year.

Direct materials$14,418

Direct labor$25,589

Fixed manufacturing overhead$9,540

Variable manufacturing overhead$31,998

Selling costs$21,235

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

Total product costs$

3.)Bob 3 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$8.10

Direct labor$2.65

Variable manufacturing overhead$6.21

Variable selling and administrative expenses$4.21

Fixed Costs per Year

Fixed manufacturing overhead$253,650

Fixed selling and administrative expenses$259,308

Bob 3 Company sells the fishing lures for $27.00. During 2012, the company sold 81,000 lures and produced 95,000 lures.

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.)

4.For the quarter ended March 31, 2012, Bob 4 Company accumulates the following sales data for its product, Garden-Tools: $315,000 budget; $337,500 actual.

Prepare a static budget report for the quarter.

Bob 4 COMPANY

Sales Budget Report

For the Quarter Ended March 31, 2012

Product LineBudgetActualDifference

Garden-Tools

5.Bob 5 company expects to produce 1,306,680 units of Product XX in 2012. Monthly production is expected to range from 74,810 to 112,910 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $8, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $1.

Prepare a flexible manufacturing budget for the relevant range value using 19,050 unit increments. (List variable costs before fixed costs.)

BOB 5 COMPANY

Monthly Flexible Manufacturing Budget

For the Year 2012