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.)