1) Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for the last five months of operations.

January: Labor Hours 160 Maintenance Cost $617

February: Labor Hours 130 Maintenance Cost $553

March: Labor Hours 180 Maintenance Cost $596

April: Labor Hours 190 Maintenance Hours: $623

May: Labor Hours 110 Maintenance Cost $532

Using the least-squares regression method, the estimated total fixed cost per month for maintenance is closest to:

2) Cowles Corporation, Inc. makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is as follows:

August: 13,000 Units September: 13,500 units October: 14,500 units November: 13,600 units December: 12,900 units

The company wants to maintain monthly ending inventories of Material K equal to 30% of the following month's production needs. On July 31, this requirement was not met because only 3,500 yards of Material K were on hand. The cost of Material K is $0.80 per yard. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year.

The desired ending inventory of Material K for September is:

12,750 yards

12,500 yards

13,050 yards

12,150 yards

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

Selling Price $126

Units in beginning inventory: 0

Units produced: 3,100

Units sold: 3,000

Units in ending Inventory: 100

Variable costs per unit:

Direct materials: $22

Direct labor: $43

variable manufacturing overhead: $3

variable selling and admin: $10

Fixed costs:

fixed manufacturing overhead: $89,900 fixed selling and admin: $42,000

What is the net operating income for the month under variable costing?

$15,000

$12,100

$2,900

$5,300

4) Petters Inc. has provided the following data for the month of November. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

Work In Process Finished Goods Cost of Goods Sold Total

Direct Materials $1,960 $14,300 $99,220 $115,480

Direct Labor 2,580 21,450 148,830 172,860

MOH applied 2,180 13,080 93,740 109,000

Total $6,720 48,830 341,790 397,340

Manufacturing overhead for the month was overapplied by $10,000.

The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

The work in process inventory at the end of November after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

$6,520

$6,889

$6,551

$6,920

5) Cervetti Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $220,000, variable expenses of $125,000, and traceable fixed expenses of $29,000. During the same month, the West business segment had sales revenues of $890,000, variable expenses of $472,000, and traceable fixed expenses of $169,000. The common fixed expenses totaled $246,000 and were allocated as follows: $123,000 to the East business segment and $123,000 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 is: