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