The manufacturing overhead budget at Rosco Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2500 direct labor-hours will be required in January. The variable overhead rate is $5 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $43,010 per month, which includes depreciation of $3750. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Hotel  X bases its budgets on guest-days. The hotel’s static budget for August appears below: The budgeted number of guest-days   4,300 Budgeted variable costs:     Supplies (@$9.60 per guest-day) $ 41,280 Laundry (@$9.40 per guest-day)   40,420 Total variable cost   81,700 Budgeted fixed costs:     Wages and salaries   57,190 Occupancy costs   52,030 Total fixed cost   109,220 Total cost $ 190,920     The total fixed cost at the activity level of 5,500 guest-days per month should be:    

Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The actual quantity of materials purchased and used in production is 50,000 pounds. The actual purchase price per pound of materials was $2.25. The company actually produced 13,000 units of finished goods during the period; however, its planning budget was based on 12,800 units. What is the materials quantity variance?

Assume the following information for a company that produced and sold 10,000 units during its first year of operations:    Per Unit   Per Year   Selling price   $ 200             Direct materials   $ 82             Direct labor   $ 50             Variable manufacturing overhead   $ 10             Fixed manufacturing overhead           $ 300,000     Using absorption costing, what is the company’s unit product cost?

Assume a company manufactures many products, one of which normally sells for $48 per unit. The company’s accounting system reports the following unit product cost for this product:    Per Unit Direct materials   $ 18   Direct labor     12   Manufacturing overhead     10   Total cost   $ 40   The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced. The remainder of its overhead is fixed and unaffected by the volume of units produced within the relevant range.A customer has approached the company with an offer to buy 300 units of a customized version of the product mentioned above for $42. The company can fulfill this order using the existing manufacturing capacity. To accommodate the customer’s desired product design, the company would incur additional direct materials cost per unit of $3. It would also have to buy a special tool for $520 that has no other use or resale value after the special order is completed. Assuming that accepting this order will not have any effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the special order?

Assume a company reported the following results:            Sales $ 400,000     Variable expenses   260,000     Contribution margin   140,000     Fixed expenses   40,000     Net operating income $ 100,000     Average operating assets $ 750,000     The turnover is closest to: 

Assume a company reported the following results:            Sales $ 400,000     Variable expenses   260,000     Contribution margin   140,000     Fixed expenses   40,000     Net operating income $ 100,000     Average operating assets $ 600,000     If the company’s minimum required rate of return on average operating assets is 16%, its residual income would be:

Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 25%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? The total fixed expenses = $90,000 The total variable expenses = $50,000 The contribution margin per unit = $5 The break-even point is 9,000 units

Use the following information to determine the break-even point in sales dollars:        Unit sales 50,000 Units Dollar sales $ 500,000 Fixed costs $ 204,000 Variable costs $ 187,500  

ssume a retailing company has two departments—Department A and Department B. The company’s most recent contribution format income statement follows:    Total   Department A   Department B Sales $ 800,000     $ 350,000       $ 450,000     Variable expenses   320,000       120,000         200,000     Contribution margin   480,000       230,000         250,000     Fixed expenses   400,000       140,000         260,000     Net operating income (loss) $ 80,000     $ 90,000       $ (10,000 )   The company says that $130,000 of the fixed expenses being charged to Department B are sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department B is discontinued the sales in Department A will drop by 8%. What is the financial advantage (disadvantage) of discontinuing Department B? Hint: compare the lost contribution margin to the savings of fixed costs.