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methods.
Brief Exercise 19-16
The Rock Company produces basketballs. It incurred the following
costs during the year.
What are the total product costs for the company under variable
costing?
Exercise 19-7
PDQ Repairs has 200 auto-maintenance service outlets nationwide.
It performs primarily two lines of service: oil changes and brake
repair. Oil change–related services represent 70% of its sales and
provide a contribution margin ratio of 20%. Brake repair
represents 30% of its sales and provides a 40% contribution margin
ratio. The company’s fixed costs are $15,620,000 (that is, $78,100
per service outlet).
Exercise 19-17 (Part Level Submission)
Siren Company builds custom fishing lures for sporting goods
stores. In its first year of operations, 2017, the company incurred the
following costs.
Siren Company sells the fishing lures for $25.25. During 2017, the
company sold 79,000 lures and produced 88,000 lures.