Metro Transit operates a fleet of city buses. In January, bu…

Metro Transit operates a fleet of city buses. In January, buses were driven 14,000 kilometres and maintenance costs totaled $37,000. In February, buses were driven 36,000 kilometres and costs were $47,000. In March, activity was 51,000 kilometres with costs of $56,000. In April, buses were driven 66,000 kilometres at a cost of $64,500. Which months represent the high and low activity levels?

Orion Electronics produces and sells smartphones at a unit s…

Orion Electronics produces and sells smartphones at a unit selling price of $515. Each phone requires $122 of direct materials and $83 of direct labour. Manufacturing overhead includes a variable component of $97 per unit, in addition to overhead costs that do not vary with production. The company also incurs $120,000 of factory overhead and $85,000 of selling and administrative expenses each year. Management is preparing a cost-volume-profit analysis to understand how costs, contribution margin, and profitability relate to expected sales. What is the contribution margin ratio?

ABC Ltd. manufactures wooden furniture. During the year, it…

ABC Ltd. manufactures wooden furniture. During the year, it purchased $50,000 of wood, paid $40,000 to factory supervisors, and spent $25,000 on sales commissions. Depreciation on factory equipment totaled $35,000, while wages for assembly line workers amounted to $60,000. Advertising expenses were $20,000. Management wants to classify these costs to better understand their financial reporting. What is the total product (manufacturing) cost?