Brief Exercise 18-8
Meriden Company has a unit selling price of $760, variable costs per unit of $380, and fixed costs of $332,120.
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 56% of sales, and fixed costs are $187,100. Management’s net income goal is $82,092.
Compute the required sales in dollars needed to achieve management’s target net income of $82,092.
Brief Exercise 18-11
For Kozy Company, actual sales are $1,114,000 and break-even sales are $735,240.
Compute the margin of safety in dollars and the margin of safety ratio.
Brief Exercise 19-16
Montana Company produces basketballs. It incurred the following costs during the year.
Direct materials $14,248
Direct labor $25,442
Fixed manufacturing overhead $9,709
Variable manufacturing overhead $31,921
Selling costs $21,138
What are the total product costs for the company under variable costing?
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 $239,522
Fixed selling and administrative expenses $247,303
Polk Company sells the fishing lures for $25.75. During 2012, the company sold 80,000 lures and produced 94,300 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.)
Prepare a variable costing income statement for 2012.
Assuming the company uses absorption costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)
Prepare an absorption costing income statement for 2012.
Brief Exercise 21-1
For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $326,000 budget; $332,000 actual.
Prepare a static budget report for the quarter.
Gundy Company expects to produce 1,212,840 units of Product XX in 2012. Monthly production is expected to range from 71,900 to 114,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $3.
Prepare a flexible manufacturing budget for the relevant range value using 21,050 unit increments. (List variable costs before fixed costs.)