1- A manufacturer of tiling grout has supplied the following data:

Kilograms produced and sold

310,000

Sales revenue

$1,940,000

Variable manufacturing expense

$959,000

Fixed manufacturing expense

$264,000

Variable selling and administrative expense

$357,000

Fixed selling and administrative expense

$230,000

Net operating income

$130,000

make a contribution income statement with the above information:

The Company's contribution margin is:

The Company's variable expense ratio is:

The company's contribution margin ratio is:

2-The following is Alsatia Corporation's contribution format income statement for last month:

Sales------------------ $ 1,400,000

variable expenses----------- 900,000

Contribution Margin -------- 500,000

Fixed expenses-------------- 300,000

Net Operating income---------$ 200,000

The company has no beginning or ending inventories and produced and sold 10,000 units during the month.

Required:

a) What is the company's contribution margin ratio?

b) What is the company's break-even in units?

c) If sales increase by 100 units, by how much should net operating income increase?

d) How many units would the company have to sell to attain target profits of $225,000?

e) What is the company's margin of safety in dollars?

f) What is the company's degree of operating leverage?

3- Schalger corporation makes a product with the following standard costs.

Inputs------------------ Standard Quantity or hours Standard Price or rate

Direct Materials-------------- 7.8 Kilos $1.00 per kilo

Direct Labor------------------- 0.4 Hours $18.00 per hour

Variable Overhead----------- 0.4 Hours $3.00 per hour

The company reported the following results concerning this product in August.

Actual output----------------------------- 8500 units

Raw materials used in production--------------- 65,550 Kilos

Purchases of raw materials----------------- 69,000 kilos

Actual Direct labor-hours--------------- 3,410 hours

Actual cost of raw materials purchases---------- $75,900

Actual Direct Labor cost------------------ $ 66, 495

Actual variable overhead cost ----------- $ 9,889

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

1. Compute the materials quantity variance.
2. Compute the materials price variance.
3. Compute the labor efficiency variance.
4. Compute the direct labor rate variance.
5. Compute the variable overhead efficiency variance.
6. Compute the variable overhead rate variance.