Question
PART 1: Lauder company had fixed costs of $282,500, variable costs of $645,000, and actual sales amounted to $1,100,000. If company has a break-even point
PART 1: Lauder company had fixed costs of $282,500, variable costs of $645,000, and actual sales amounted to $1,100,000. If company has a break-even point at $750,000 in sales revenue.
a. determine the margin of safety expressed in dollars
b. determine the margin of safety expressed as a percentage of sales. Enter percentage amount as a whole number.
____%
c. Determine contribution margin ratio
_____%
d. Determine the operating income
$______
PART 2:
The following data relate to direct labor costs for the current period:
Standard costs | 36,000 hours at $23.50 |
Actual costs | 35,000 hours at $23.00 |
What is the direct labor time variance?
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PART 3:
Standard and actual costs for direct materials for the manufacture of 1,000 units of product were as follows:
Actual costs | 1,450 lbs. @ $8.10 |
Standard costs | 1,500 lbs. @ $8.00 |
Determine the (a) quantity variance, (b) price variance, and (c) total direct materials cost variance.
a. Quantity variance | $ |
b. Price variance | $ |
c. Total direct materials cost variance | $ |
Step by Step Solution
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Step: 1
Part 1 Total Sales value 1100000 Variable cost 645000 Fixed cost per year 282500 Contributi...Get Instant Access to Expert-Tailored Solutions
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