1.Goodson Company sells two products, Quartz models and Windup

models. Goodson predicts that it will sell 7,200 Quartz models and 5,600 Windup

models in the next period. The unit contribution margins for Quartz models and Windup

models are $31 and $63, respectively. What is the weightedaverage

unit contribution margin?

ANSWERS:

A.

$360.00

B.

$23.14

C.

$45.00

D.

$0.02

2.

Here are selected data for Fritzel Company:

Cost of goods manufactured	$390,000
Work in process inventory, beginning	112,000
Work in process inventory, ending	92,000
Direct materials used	75,000

Manufacturing overhead is allocated at 60% of direct labour cost.

What was the amount of direct labour costs?

ANSWERS:

A.

$95,000

B.

$295,000

C.

$209,375

D.

$184,375

3.

Use the information below to answer the following question(s).

Farm Fresh Dairy provided the following expense information for May:

Assemblyline workers' wages	$72,000
Caps for milk bottles	2,000
Reconfiguring the assembly line	155,000
Customer support hotline	8,000
Delivery expenses	17,000
Depreciation on factory equipment	81,000
Plastic milk bottles	52,000
Salaries of salespeople	63,000
Salaries of research scientists	84,000
Customer tollfree order line	4,000

What is the total cost for the design category of the value chain at Farm Fresh Dairy?

ANSWER:

A.

$84,000

B.

$155,000

C.

$88,000

D.

$239,000