CHT Corporation produces and sells a single product. Data concerning that product appear below:   Per Unit Percent of Sales Selling price $ 170     100 % Variable expenses   68     40 % Contribution margin $ 102     60 %  Fixed expenses are $521,000 per month. The company is currently selling 7,000 units per month. Management is considering using a new component that would increase the unit variable cost by $6. Since the new component would increase the features of the company’s product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company’s monthly net operating income of this change?

Maintenance costs at a Staton Corporation factory are listed below:   Machine-Hours   Maintenance Cost March 3,627     $ 54,384 April 3,588     $ 53,980 May 3,637     $ 54,453 June 3,638     $ 54,491 July 3,572     $ 53,843 August 3,611     $ 54,196 September 3,644     $ 54,550 October 3,609     $ 54,181 November 3,669     $ 54,767  Management believes that maintenance cost is a mixed cost that depends on machine-hours. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first and round off to the nearest whole cent. Compute the fixed component second and round off to the nearest whole dollar. These estimates would be closest to:

Homeyard Corporation has provided the following data for its two most recent years of operation:       Selling price per unit $ 71 Manufacturing costs:     Variable manufacturing cost per unit produced:     Direct materials $ 12 Direct labor $ 6 Variable manufacturing overhead $ 3 Fixed manufacturing overhead per year $ 264,000 Selling and administrative expenses:     Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 74,000     Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced during the year 11,000 12,000 Units sold during the year 8,000 14,000 Units in ending inventory 3,000 1,000  The net operating income (loss) under absorption costing in Year 1 is closest to:

Compute the amount of raw materials used during November if $30,000 of raw materials were purchased during the month and if the inventories were as follows: Inventories BalanceNovember 1 BalanceNovember 30 Raw materials $ 7,000   $ 4,000   Work in process $ 6,000   $ 7,500   Finished goods $ 10,000   $ 12,000    

Mishakoe Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.     Sales (1,000 units) $ 50,000 Variable expenses   32,500 Contribution margin   17,500 Fixed expenses   12,250 Net operating income $ 5,250  The break-even point in unit sales is closest to:

Variable costing net operating income is usually closer to the net cash flow of a period than is absorption costing net operating income.

Frontline Corporation has provided the following information:   Cost per Unit Cost per Period Direct materials $ 6.20         Direct labor $ 3.70         Variable manufacturing overhead $ 1.25         Fixed manufacturing overhead       $ 10,000   Sales commissions $ 1.50         Variable administrative expense $ 0.50         Fixed selling and administrative expense       $ 5,000    For financial reporting purposes, the total amount of product costs incurred to make 5,000 units is closest to: 

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:       Selling price $ 121 Units in beginning inventory   0 Units produced   6,000 Units sold   5,600 Units in ending inventory   400 Variable costs per unit:     Direct materials $ 38 Direct labor $ 53 Variable manufacturing overhead $ 3 Variable selling and administrative expense $ 11 Fixed costs:     Fixed manufacturing overhead $ 60,000 Fixed selling and administrative expense $ 28,000  What is the total period cost for the month under variable costing?

The following costs were incurred in May:     Direct materials $ 41,000   Direct labor $ 13,000   Manufacturing overhead $ 46,000   Selling expenses $ 18,000   Administrative expenses $ 15,000    Conversion costs during the month totaled:

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:       Units in beginning inventory   0 Units produced   8,900 Units sold   8,500 Units in ending inventory   400 Variable costs per unit:     Direct materials $ 26 Direct labor $ 25 Variable manufacturing overhead $ 4 Variable selling and administrative expense $ 4 Fixed costs:     Fixed manufacturing overhead $ 249,200 Fixed selling and administrative expense $ 17,000  What is the variable costing unit product cost for the month?