1.

Seemore Company manufactures binoculars. The actual costs for 2013 and 2014 were as follows:

	2013		2014
Direct materials:

	Plastic case	$ 8.00		$ 7.60
	Lens set	34.00		34.40

Direct labor	64.00	(1.6 hours)	60.00	(1.5 hours)
Indirect manufacturing costs:

	Variable	16.00		14.20
	Fixed	4.00	(100,000 units)	3.80	(120,000 units)

Beginning in 2014, Seemore implemented a continuous improvement program that required a first-year cost reduction target of a 7 percent reduction of the 2013 base. Seemore's continuous improvement target for direct labor in 2014 was: Select one: A. $64.00 B. $60.00 C. $59.52 D. $70.40

2.

Seemore Company manufactures binoculars. The actual costs for 2013 and 2014 were as follows:

	2013		2014
Direct materials:

	Plastic case	$ 8.00		$ 7.60
	Lens set	34.00		34.40

Direct labor	64.00	(1.6 hours)	60.00	(1.5 hours)
Indirect manufacturing costs:

	Variable	16.00		14.20
	Fixed	4.00	(100,000 units)	3.80	(120,000 units)

Beginning in 2014, Seemore implemented a continuous improvement program that required a first-year cost reduction target of a 7 percent reduction of the 2013 base. Seemore's continuous improvement target for plastic cases in 2014 was: Select one: A. $8.00 B. $7.60 C. $7.44 D. $8.80

3. Periwinkle Manufacturing Company has the following budgeted costs for 10,000 units:

	Variable Costs	Fixed Costs
Manufacturing	$200,000	$ 75,000
Selling & Administrative	150,000	25,000
Total	$350,000	$100,000

What is the markup on variable costs needed to break even? Select one: A. 28.6 percent B. 150.4 percent C. 33.3 percent D. 300.0 percent 4. Periwinkle Manufacturing Company has the following budgeted costs for 10,000 units:

	Variable Costs	Fixed Costs
Manufacturing	$200,000	$ 75,000
Selling & Administrative	100,000	25,000
Total	$300,000	$100,000

What is the markup on fixed costs needed to obtain a target profit of $125,000? Select one: A. 300.0 percent B. 400.0 percent C. 150.0 percent D. 425.0 percent 5. Patrick Company has predicted the following costs for this year for 50,000 units:

	Manufacturing	Selling and Administrative
Variable	$ 400,000	$ 50,000
Fixed	600,000	150,000
Total	$1,000,000	$200,000

What is the manufacturing cost markup needed to obtain a target profit of $145,000? Select one: A. 10.4 percent B. 33.5 percent C. 500.0 percent D. 34.5 percent