(a) For Kozy Company, actual sales are $1,173,000 and break-even sales are $797,640.
Compute the margin of safety in dollars and the margin of safety ratio.
(b) Montana Company produces basketballs. It incurred the following costs during the year.
Direct materials $14,567
Direct labor $25,862
Fixed manufacturing overhead $9,712
Variable manufacturing overhead $31,984
Selling costs $20,828
What are the total product costs for the company under variable costing?
(c) For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $326,100 budget; $337,600 actual.
Prepare a static budget report for the quarter.
Sales Budget Report
For the Quarter Ended March 31, 2012
Product Line Budget Actual Difference
(d) Gundy Company expects to produce 1,222,920 units of Product XX in 2012. Monthly production is expected to range from 78,580 to 119,060 units. Budgeted variable manufacturing costs per unit are: direct materials $3, direct labor $8, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $3.
Prepare a flexible manufacturing budget for the relevant range value using 20,240 unit increments. (List variable costs before fixed costs.)