Question
Pedregon Corporation has provided the following information: Cost per Period Cost per Unit $6.95 $3.50 $1.75...
Pedregon Corporation has provided the following information: Cost per Period Cost per Unit $6.95 $3.50 $1.75 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $19,800 $0.40 $0.50 $ 7,700 If 4,500 units are sold, the total variable cost is closest to: Multiple Choice O $72,900 O $80,550 O $58.950 O $54.900
Dake Corporation's relevant range of activity is 3.100 units to 6.500 units. When it produces and sells 4.800 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $7.00 $3.10 $1.75 $3.00 $1.05 $0.75 $0.85 $0.75 if 3.800 units are produced, the total amount of indirect manufacturing cost incurred is closest to: Multiple Choice O $6,650 O $14.400 O $2050 O $18.050
$450,000 30.000 153,000 Sales Beginning inventory of direct materials, January 1. 20X1 Purchases of direct materials Ending inventory of direct materials. December 31. 20x1 Direct manufacturing labor Indirect manufacturing costs Beginning inventory of finished goods, January 1. 20X1 Cost of goods manufactured Ending inventory of finished goods, December 31, 20x1 Operating costs 18.000 26.000 42.000 47.000 233.000 41.000 157.000 If the company prepares a "traditional format" (i.e. financial reporting) income statement what is the company's gross margin (gross profit)? Multiple Choice O $211.000 O $217.000 O $54.000 Lo $60.000
Macy Corporation's relevant range of activity is 4,800 units to 11,000 units. When it produces and sells 7.900 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $4.95 $3.40 $1.40 $3.60 $1.35 $0.90 $1.30 $0.80 If the selling price is $26.50 per unit, the contribution margin per unit sold is closest to: Multiple Choice 0 $9.75 0 $710 0 $18.15 0 $14.65
Answers
Pedregon Total variable cost = ( 6.95 + 3.50 + 1.75 + 0.40 + 0.50 ) * 4500 58950
Dake 3800 units Variable manufacturing cost ( 3800 * 1.75 ) 6650 Fixed manufacturing cost ( 4800 * 3.00 ) 14400 Total amount of indirect manufacturing cost 21050 Note : Fixed manufacturing overhead is calculated from the given base of 4800 units
3rd question Beginning inventory of finished goods 47000 (+) Cost of goods manufactured 233000 (-) Ending inventory of finished goods 41000 Cost of goods sold 239000 Sales 450000 (-) Cost of goods sold 239000 Gross profit 211000
Macy corporation Variable cost per unit = 4.95 + 3.40 + 1.40 + 1.30 + 0.80 11.85 Contribution margin per unit = Selling price - Variable cost per unit = 26.50 - 11.85 14.65
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