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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?


a. $23,500 favorable



b. $23,500 unfavorable



c. $23,000 favorable



d. $23,000 unfavorable

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

$

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