1) Given the following data for Mehring Company, compute (A) total manufacturing costs and (B) cost of goods manufactured:

A B

Direct materials used $230,000 Beginning work in process $30,000

Direct labor 150,000 Ending work in process 15,000

Manufacturing overhead 225,000 Beginning finished goods 38,000

Operating expenses 263,000 Ending finished goods 23,000

A) $590,000 $620,000

B) $605,000 $590,000

C) $605,000 $620,000

D) $620,000 $635,000

2) At the beginning of the year, Monroe Company estimates annual overhead costs to be $1,600,000 and that 300,000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is

A) $1,600,000.

B) $1,680,000.

C) $1,523,809.

D) $1,120,000.

3) Wendy Industries produces only one product. Monthly fixed expenses are $12,000, monthly unit sales are 2,500, and the unit contribution margin is $10. How much is monthly net income?

A) $13,000

B) $37,000

C) $0

D) $25,000

4) Within the relevant range, the variable cost per unit

A) decreases as production increases.

B) increases as production increases.

C) remains constant at each activity level.

D) differs at each activity level.

5) In 2012, Teller Company sold 3,000 units at $400 each. Variable expenses were $280 per unit, and fixed expenses were $180,000. The same selling price, variable expenses, and fixed expenses are expected for 2013. What is Teller's break-even point in sales dollars for 2013?

A) $1,714,286

B) $600,000

C) $1,800,000

D) $1,200,000