1. Chance, Inc. sold 3,600 units of its product at a price of $102 per unit. Total variable cost per unit is $75, consisting of $50 in variable production cost and $25 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.

2.

Kamper Company sells two products Big Z and Little Z. Current direct material and direct labor costs are detailed below. Next year, the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $486,000. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $20 per hour and the company expects to manufacture 43,000 units of Big Z and 20,000 units of Little Z next year.

	Direct Material per Unit			Direct Labor Dollars per Unit
Big Z	$	17		$	16
Little Z	$	23		$	13

What are total estimated direct labor hours for this next year?

3. Raven Company has a target of $70,700 pre-tax income. The contribution margin ratio is 25%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $37,400?

4. The sales budget for Modesto Corp. shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10.00 and $12.00, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units. Budgeted purchases of Product B for the year would be:

5.

The following data relates to Spurrier Company's estimated amounts for next year.

Estimated:	Department 1					Department 2
Manufacturing overhead costs	$	1,500,000				$	3,700,000
Direct labor hours		560,000	DLH				810,000	DLH
Machine hours		110,000	MH				44,000	MH

What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round your answer to two decimal places.)