ACC561 Week 5 Exercises - For Waqas only

Brief Exercise 18-8

Meriden Company has a unit selling price of $530, variable costs per unit of $318, and fixed costs of $186,984. Compute the break-even point in units using the mathematical equation.

Break-even point			units

Brief Exercise 18-10

For Turgo Company, variable costs are 59% of sales, and fixed costs are $175,000. Management’s net income goal is $95,067. Compute the required sales in dollars needed to achieve management’s target net income of $95,067.

Required sales		$

Brief Exercise 18-11

For Kozy Company, actual sales are $1,178,000 and break-even sales are $753,920. Compute the margin of safety in dollars and the margin of safety ratio.

Margin of safety		$
Margin of safety ratio			%

Brief Exercise 19-16

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

Direct materials		$14,722
Direct labor		$25,332
Fixed manufacturing overhead		$10,040
Variable manufacturing overhead		$32,112
Selling costs		$21,099

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 $7.80 Direct labor $2.55 Variable manufacturing overhead $5.98 Variable selling and administrative expenses $4.06   Fixed Costs per Year Fixed manufacturing overhead $244,407 Fixed selling and administrative expenses $249,704 Polk Company sells the fishing lures for $26.00. During 2012, the company sold 80,200 lures and produced 95,100 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 $