1) Jamie's Hot Dog Stands sells hot dogs at ballparks across Canada for $1.55. Variable costs are $1.15 per unit with fixed production costs of $80,000 per month at a level of 320,000 units. Fixed administrative costs total $25,000. Sales average 320,000 units per month, with planned production of 320,000 hot dogs.

Required:

a.What are break-even unit sales under variable costing?

b.What are break-even unit sales under absorption costing if she sells everything she prepares?

c.What are break-even unit sales under absorption costing if average sales are 399,000 and planned production is changed to 400,000?

2) Teri's Furniture uses variance analysis to evaluate manufacturing overhead in its' table factory. The information for the May overhead expenditures is as follows:

Budgeted output units14,000 tables

Budgeted fixed manufacturing overhead$22,400

Budgeted variable manufacturing overhead$3.00 per direct labour hour

Budgeted direct manufacturing labour hours0.2 hour per table

Fixed manufacturing costs incurred $24,000

Direct manufacturing labour hours used 4,000 hours

Variable manufacturing costs incurred $11,000

Actual units manufactured 15,000 tables

Required:

a.Calculate the variable manufacturing overhead rate and efficiency variances; and, the fixed manufacturing overhead rate and production-volume variances.

b.Prepare all necessary journal entries to record the actual costs, allocated costs, and variances. Keep variable and fixed entries separate.