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TB MC Qu. 8-69 The manufacturing overhead budget at Franklyn ... The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,200 direct labor-hours will be required in January. The variable overhead rate is $7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,160 per month, which includes depreciation of $3,600. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice $61,960 $39,560 $22.400 $65,560 Woodridge Corporation manufactures numerous products, one of which is called Alpha-32. The company has provided the following data about this product: Unit sales (a) Selling price per unit Variable cost per unit Traceable fixed expense 70,000 $ 89.00 71.00 $1,539,000 $ Management is considering increasing the price of Alpha-32 by 7%, from $89.00 to $95.23. The company's marketing managers estimate that this price hike would decrease unit sales by 8%, from 70,000 units to 64,400 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $95.23 if this sales forecast is correct? Multiple Choice $1,696,100 $21,412 $1,560,412 $157,100 Ladle Corporation uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 90,000 units next year, the unit product cost of a particular product is $46.20. The company's selling and administrative expenses for this product are budgeted to be $1,907,000 in total for the year. The company has invested $271,000 in this product and expects a return on investment of 14%. The markup on absorption cost for this product would be closest to: Multiple Choice 59.8% 45.9% U U 14.0% 46.8% A new product, an automated crepe maker, is being introduced at Knutt Corporation. At a selling price of $32 per unit, management projects sales of 72,000 units. Launching the crepe maker as a new product would require an investment of $200,000. The desired return on investment is 14%. The target cost per crepe maker is closest to: (Round your answer to 2 decimal places.) Multiple Choice $39.42 $39.80 $31.61 $32.00 Rodarta Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's predetermined overhead rate for fixed manufacturing overhead is $3.40 per machine-hour and the denominator level of activity is 3.600 machine-hours. In the most recent month, the total actual fixed manufacturing overhead was $12,270 and the company actually worked 3,530 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 3,550 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? Multiple Choice $238 Unfavorable $68 Favorable $238 Favorable $170 Unfavorable
