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 10 Fixed manufacturing overhead per year $ 148,500 In addition, the company has fixed selling and administrative costs of $ 150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much is cost of goods sold using full costing?
7. Question:( TCO 6) Costs may be allocated to 8. Question:( TCO 5) An allocation base
9. Question:( TCO 6) The building maintenance department for Jones Manufacturing Company budgets annual costs of $ 4,200,000 based on the expected operating level for the coming year. The costs are allocated to two production departments. The following data relate to the potential allocation bases: Production Dept. 1 Production Dept. 2 Square footage 15,000 45,000 Direct labor hours 25,000 50,000 If Jones assigns costs to departments based on square footage, how much total costs will be allocated to Production Department 1
10. Question:( TCO 7) A company is trying to decide whether to sell partially completed goods in their current state or incur additional costs to finish the goods