Questions -

Q1. The following cost behavior patterns describe anticipated manufacturing costs for 2013: raw material, $7.30/unit; direct labor, $10.30/unit; and manufacturing overhead, $273,900 + $8.30/unit.

Required: If anticipated production for 2013 is 33,000 units, calculate the unit cost using variable costing and absorption costing.

Q2. Acme, Inc., incurs the following costs during May:

Sales expense 13,000 Administrative expense 23,000 

Direct labor 27,500 Plant depreciation 7,700 

Factory supplies 4,000 Indirect labor 9,500 

Advertising 4,300 Utilities 11,500*

Raw material used 19,500

*75% of this amount relates to the factory.

Required: Calculate Acme's total manufacturing costs for May.

Q3. ABC Company's budgeted sales for June, July, and August are 14,400, 18,400, and 16,400 units, respectively. ABC requires 30% of the next month's budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 4,320 units. Each unit that ABC Company produces uses 3 pounds of raw material.ABC requires 25% of the next month's budgeted production as raw material inventory each month.

Required: Calculate the number of pounds of raw material to be purchased in June.