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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
$20
Direct Labor per unit
12
Variable manufacturing overhead per unit