1- Alliance Company budgets production of 29,000 units in January and 33,000 units in the February. Each finished unit requires 4 pounds of raw material K that costs $3.00 per pound. Each month's ending raw materials inventory should equal 30% of the following month's budgeted materials. The January 1 inventory for this material is 34,800 pounds. What is the budgeted materials needed in pounds for January?

2-Memphis Company anticipates total sales for April, May, and June of $890,000, $990,000, and $1,040,000 respectively. Cash sales are normally 30% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 60% are collected during the first month after the sale, and the remaining 10% are not collected. Compute the amount of cash received from total sales during the month of May.

3- Hayes Inc. provided the following information for the current year:

Beginning inventory110 units

Units produced 760 units

Units sold809 units

Selling price$160/unit

Direct materials $36/unit

Direct labor $17/unit

Variable manufacturing overhead $16/unit

Fixed manufacturing overhead $25,080/year

Variable selling/administrative costs $9/unit

Fixed selling/administrative costs$16,500/year

What is the unit product cost for the year using absorption costing?

4- Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.

Units produced this year33,000 units

Units sold this year19,800 units

Direct materials $17 per unit

Direct labor $19 per unit

Variable overhead $3 per unit

Fixed overhead$165,000 in total

Given Advanced Company's data, compute cost per unit of finished goods under absorption costing.

5- Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.

Units produced this year33,000 units

Units sold this year19,800 units

Direct materials $17 per unit

Direct labor $19 per unit

Variable overhead $3 per unit

Fixed overhead$165,000 in total

Given Advanced Company's data, and the knowledge that the product is sold for $64 per unit and operating expenses are $280,000, compute the net income under variable costing.

6- If a firm's forecasted sales are $262,000 and its break-even sales are $196,000, the margin of safety in dollars is:

7- Watson Company has monthly fixed costs of $81,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $14,800, what dollar amount of sales must be made to produce the target income?

8- Henderson Co. has fixed costs of $42,000 and a contribution margin ratio of 30%. If expected sales are $250,000, what is the margin of safety as a percent of sales?

9- A product sells for $270 per unit, and its variable costs per unit are $197. Total fixed costs are $434,000. If the firm wants to earn $50,720 pretax income, how many units must be sold?

10- Locus Company has total fixed costs of $119,000. Its product sells for $59 per unit and variable costs amount to $45 per unit. Next year Locus Company wishes to earn a pretax income that equals 35% of fixed costs. How many units must be sold to achieve this target income level?

11- Raven Company has a target of $70,100 pre-tax income. The contribution margin ratio is 32%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $36,200?

12- Use the following information to determine the break-even point in sales dollars:

Unit sales 54,800 Units

Dollar sales $548,000

Fixed costs $210,000

Variable costs$205,500

13- Use the following information to determine the break-even point in units (rounded to the nearest whole unit):

Unit sales 53,000 Units

Unit selling price $14.65

Unit variable cost $7.80

Fixed costs $189,000

14- The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $183,500.

Sales (55,000 units) $990,000

Costs:

Direct materials $202,000

Direct labor 240,500

Fixed factory overhead 102,500

Variable factory overhead 150,500

Fixed marketing costs 110,500

Variable marketing costs 50,500 856,500

Pretax income $133,500

15- The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $156,000.

Sales (43,000 units) $989,000

Costs:

Direct materials $216,800

Direct labor 241,800

Fixed factory overhead 109,000

Variable factory overhead 151,800

Fixed marketing costs 111,800

Variable marketing costs 51,800 883,000

Pretax income $106,000