ACC 561 Wiley Week 5

ACC 561 Wiley Week 5 18-8 18-10 18-11 19-16 19-17 21-1 21-4

Exercise  18-8

Meriden Company has a unit selling price of $610, variable costs per unit of $305, and fixed costs of $218,075.

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

Exercise  18-10
For Turgo Company, variable costs are 56% of sales, and fixed costs are $178,600. Management’s net income goal is $117,080.

Compute the required sales in dollars needed to achieve management’s target net income of $117,080.

Exercise  18-11

For Kozy Company, actual sales are $1,256,000 and break-even sales are $778,720.

Compute the margin of safety in dollars and the margin of safety ratio.


Margin of safety
$

Margin of safety ratio %

Exercise  19-16

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


Direct materials                                                $14,151
Direct labor                                                         $25,208
Fixed manufacturing overhead                  $9,995
Variable manufacturing overhead            $31,583
Selling costs                                                        $20,838

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


Total product costs
$

Exercise  19-17

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                                                  $240,030
Fixed selling and administrative expenses                            $247,303

Polk Company sells the fishing lures for $25.75. During 2012, the company sold 80,100 lures and produced 94,500 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
$


Exercise  21-1

 For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $321,800 budget; $332,200 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
Garden-Tools $ $ $


Difference:

Favorable -Unfavorable- Neither favorable nor unfavorable


Exercise  21-4

Gundy Company expects to produce 1,242,720 units of Product XX in 2012. Monthly production is expected to range from 81,610 to 129,790 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $6, and overhead $9. 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 24,090 unit increments. (List variable costs before fixed costs.)