If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will
The balance in the Work in Process Inventory account on Apri…
The balance in the Work in Process Inventory account on April 1 was $26,800, and the balance on April 30 was $22,600. Costs incurred during the month were as follows: direct materials, $41,250; direct labor, $21,300; and overhead, $32,600.What amount was transferred to the Finished Goods Inventory account for April? Select one:
Company X has a degree of operating leverage of 10, whereas,…
Company X has a degree of operating leverage of 10, whereas, Company Y has a degree of operating leverage of 5. Each company has the same level of sales.Which of the following statements is true?
If a company decreases the variable expense per unit while i…
If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will
Soil Company sells a single product. If the selling price pe…
Soil Company sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then Select one:
Dana Company sells one product at a price of $50 per unit. V…
Dana Company sells one product at a price of $50 per unit. Variable expenses are 40 percent of sales, and fixed expenses are $50,000. The sales dollars level required to break even are:
The following monthly data are available for the Sumslow Com…
The following monthly data are available for the Sumslow Company and its only product: Unit selling price $36 Unit variable expenses $28 Total fixed expenses $51,000 Actual sales for the month of March 7,000 units The margin of safety for the company during March was:
Purple Company’s contribution margin ratio is 30%. If the de…
Purple Company’s contribution margin ratio is 30%. If the degree of operating leverage is 6 at the $125,000 sales level, before-tax profit must equal:
Leap Company has collected the following information: Co…
Leap Company has collected the following information: Cost to buy one unit $24 Production costs per unit: Direct materials $10 Direct labor $8 Variable manufacturing overhead $1 Total fixed manufacturing overhead $95,000 What level of production is needed for Leap to be indifferent between making or buying the part, assuming it can eliminate $75,000 of fixed costs?
Paris Corp. obtained the following information from the Raw…
Paris Corp. obtained the following information from the Raw Materials Inventory account and purchasing records for the second quarter of the current year: Beginning Raw Materials $5,000 Ending Raw Materials $3,000 April Purchases $4,000 May Purchases $2,000 June Purchases $2,000 The amount of Raw Materials used this period was: