Assignment for Archmage

Question 1

Meriden Company has a unit selling price of $700, variable costs per unit of $350, and fixed costs of $264,950. Compute the break-even point in units using the mathematical equation.

Break-even point

units

Question 2

For Turgo Company, variable costs are 56% of sales, and fixed costs are $189,600. Management’s net income goal is $85,928. Compute the required sales in dollars needed to achieve management’s target net income of $85,928.

Required sales

$

Question 3

For Kozy Company, actual sales are $1,177,000 and break-even sales are $717,970. 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		$14,256
Direct labor		$25,154
Fixed manufacturing overhead		$10,180
Variable manufacturing overhead		$31,694
Selling costs		$21,114

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 $241,046 Fixed selling and administrative expenses $247,303 Polk Company sells the fishing lures for $25.75. During 2012, the company sold 80,400 lures and produced 94,900 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 $

Question 6

For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $322,400 budget; $337,200 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		Difference
Garden-Tools		$		$		$

Question 7

Gundy Company expects to produce 1,279,560 units of Product XX in 2012. Monthly production is expected to range from 70,980 to 104,160 units. Budgeted variable manufacturing costs per unit are: direct materials $3, direct labor $8, 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 16,590 unit increments.  (List variable costs before fixed costs.)

GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2012
	$	$	$
	$	$	$
	$	$	$

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