QUESTION 1 - Bateman Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
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Selling price
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$117
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Units in beginning inventory
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0
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Units produced
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4,700
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Units sold
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4,400
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Units in ending inventory
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300
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Variable costs per unit:
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|
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Direct materials
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$36
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Direct labor
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$38
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Variable manufacturing overhead
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$4
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Variable selling and administrative
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$11
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Fixed costs:
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|
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Fixed manufacturing overhead
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$89,300
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Fixed selling and administrative
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$26,400
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Required: What is the unit product cost for the month under variable costing?
QUESTION 2 - At an activity level of 8,800 units, Pember Corporation's total variable cost is $146,520 and its total fixed cost is $219,296.
Required: For the activity level of 8,900 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range.
QUESTION 3 - Marano Corporation produces and sells a single product. In October, the company sold 6,200 units. Its total sales were $223,200, its total variable expenses were $105,400, and its total fixed expenses were $100,400.
Required: a. Construct the company's contribution format income statement for October.
b. Redo the company's contribution format income statement assuming that the company sells 6,400 units.
QUESTION 4 - Mat Corporation's actual manufacturing overhead cost for the month ended March 31 was $78,000. The company's predetermined overhead rate was 50% of direct labor cost. Other information pertaining to Mat Corporation's inventories and production for the month of March is as follows:
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Beginning inventories, March 1:
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Work in process
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$40,000
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Finished goods
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$102,000
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Direct materials cost
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$104,000
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Direct labor cost
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$160,000
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Ending inventories, March 31:
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|
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Work in process
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$36,000
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Finished goods
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$105,000
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Required:
a. Determine the underapplied or overapplied overhead for the month.
b. Determine the Cost of Goods Manufactured for the month.
QUESTION 5 - Sproull Inc., which produces a single product, has provided the following data for its most recent month of operation:
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Number of units produced
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2,000
|
|
Variable costs per unit:
|
|
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Direct materials
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$21
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Direct labor
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$75
|
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Variable manufacturing overhead
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$7
|
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Variable selling and administrative expenses
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$6
|
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Fixed costs:
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|
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Fixed manufacturing overhead
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$116,000
|
|
Fixed selling and administrative expenses
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$40,000
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The company had no beginning or ending inventories.
Required: a. Compute the unit product cost under absorption costing.
b. Compute the unit product cost under variable costing.
QUESTION 6 - Data for March concerning Mauger Corporation's two major business segments-Fibers and Feedstocks-appear below:
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Sales revenues, Fibers
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$560,000
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Sales revenues, Feedstocks
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$810,000
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Variable expenses, Fibers
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$235,000
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Variable expenses, Feedstocks
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$348,000
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Traceable fixed expenses, Fibers
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$90,000
|
|
Traceable fixed expenses, Feedstocks
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$113,000
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Common fixed expenses totaled $461,000 and were allocated as follows: $249,000 to the Fibers business segment and $212,000 to the Feedstocks business segment.
Required: Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.