1.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$140
Units in beginning inventory	0
Units produced	2,640
Units sold	2,250
Units in ending inventory	390
Variable cost per unit:
Direct materials	$48
Direct labor	$18
Variable manufacturing overhead	$10
Variable selling and administrative	$16
Fixed costs:
Fixed manufacturing overhead	$92,400
Fixed selling and administrative expenses	$13,500

The total gross margin for the month under absorption costing would be?

2.

Cervetti Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $380,000, variable expenses of $205,000, and traceable fixed expenses of $45,000. During the same month, the West business segment had sales revenues of $1,050,000, variable expenses of $536,000, and traceable fixed expenses of $201,000. The common fixed expenses totaled $310,000 and were allocated as follows: $155,000 to the East business segment and $155,000 to the West business segment.

A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment would be?

3.

Mccoo Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $1.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $119,600 per month, which includes depreciation of $19,710. All other fixed manufacturing overhead costs represent current cash flows. The November direct labor budget indicates that 9,200 direct labor-hours will be required in that month.

Required:

a.	Determine the cash disbursement for manufacturing overhead for November.

b.	Determine the predetermined overhead rate for November.