equivalent units in The Blending Department’ s work in process inventory at the end of the period? 12. Question:( TCO 3) During March, the varnishing department incurred costs of $ 90,250 for direct labor. The beginning inventory was 3,500 units and 10,000 units were transferred to the varnishing department from the sanding department during June. The direct labor cost in the beginning inventory was $ 27,270. The ending inventory consisted of 2,000 units, which were 25 % complete with respect to direct labor. What is the cost per equivalent unit for direct labor? 13. Question:( TCO 4) Clearance Depot has total monthly costs of $ 8,000 when 2,500 units are produced and $ 12,400 when 5,000 units are produced. What is the estimated total monthly fixed cost? 1. Question:( TCO 4) The margin of safety is the difference between 2. Question:( TCO 4) Allen Company sells homework machines for $ 100 each. Variable costs per unit are $ 75 and total fixed costs are $ 62,000. Allen is considering the purchase of new equipment that would increase fixed costs to $ 84,000, but decrease the variable costs per unit to $ 60. At that level Allen Company expects to sell 3,000 units next year. What is Allen’ s break-even point in units if it purchases the new equipment? 3. Question:( TCO 4) Paula Corporation sells a single product at a price of $ 275 per unit. Variable cost per unit is $ 135 and fixed costs total $ 356,860. If sales are expected to be $ 825,000, what is Paula’ s margin of safety? 4. Question:( TCO 5) In variable costing, when does fixed manufacturing overhead become an expense? 5. Question:( TCO 5) Variable costing income is a function of: 6. Question:( TCO 5) Peak Manufacturing produces snow blowers. The selling price per snow blower is $ 100. Costs involved in production are: Direct Material per unit