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 $700, variable costs per unit of $350, and fixed costs of $302,750.

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

Exercise  18-10

For Turgo Company, variable costs are 63% of sales, and fixed costs are $182,600. Management’s net income goal is $72,589.

Compute the required sales in dollars needed to achieve management’s target net income of $72,589.

Exercise  18-11

For Kozy Company, actual sales are $1,112,000 and break-even sales are $711,680.

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

Exercise  19-16

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

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

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.

Polk Company sells the fishing lures for $27.25. During 2012, the company sold 80,800 lures and produced 95,300 lures.

Exercise  21-1

For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $314,200 budget; $334,300 actual.

Prepare a static budget report for the quarter.

Exercise  21-4

Gundy Company expects to produce 1,314,600 units of Product XX in 2012. Monthly production is expected to range from 84,070 to 114,630 units. Budgeted variable manufacturing costs per unit are: direct materials $3, 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 15,280 unit increments.