1.

The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March.

Corporate headquarters building lease	$87,600
Cosmetics Department sales commissions--Northridge Store	$5,230
Corporate legal office salaries	$60,500
Store manager's salary-Northridge Store	$17,200
Heating-Northridge Store	$20,200
Cosmetics Department cost of sales--Northridge Store	$37,400
Central warehouse lease cost	$11,100
Store security-Northridge Store	$18,900
Cosmetics Department manager's salary--Northridge Store	$4,150

The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

$42,630

$46,780

$101,130

$37,400

2.

Erkkila Inc. reports that at an activity level of 7,300 machine-hours in a month, its total variable inspection cost is $425,030 and its total fixed inspection cost is $192,204.

What would be the average fixed inspection cost per activity unit at an activity level of 7,600 machine-hours in a month? Assume that this level of activity is within the relevant range.

rev: 03_22_2017_QC_CS-83283

$25.29

$84.55

$26.33

$31.89

3.

Younger Corporation reports that at an activity level of 3,000 units, its total variable cost is $147,570 and its total fixed cost is $75,144.

Required:

For the activity level of 3,100 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range. (Round your "Average cost" to 2 decimal places and other answers to the nearest dollar amount.)

a) Total variable cost _________________

b) Total fixed cost _________________

c) Total cost _________________

d) Average variable cost _________________ per unit

e) Average fixed cost _________________ per unit

f) Average total cost _________________ per unit

4.

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Activities	Activity Rate
Setting up batches	$94.25	per batch
Processing customer orders	$83.89	per customer order
Assembling products	$18.11	per assembly hour

Data concerning two products appear below:

	Product V09X	Product A09X
Number of batches	71	14
Number of customer orders	22	11
Number of assembly hours	494	699

How much overhead cost would be assigned to Product V09X using the activity-based costing system?

$196.25

$192,320.37

$17,483.67

$6,691.75

5.

Jeanlouis, Inc., manufactures and sells two products: Product D0 and Product D5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product D0	Product D5	Total
Labor-related	DLHs	$313,743	3,600	3,300	6,900
Production orders	orders	70,264	300	500	800
General factory	MHs	253,555	4,300	4,200	8,500
		$637,562

The total overhead applied to Product D5 under activity-based costing is closest to:

$319,252

$125,286

$304,920

$273,240

6.

Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March.

Sales (7,700 units)	$400,400
Variable expenses	246,400
Contribution margin	154,000
Fixed expenses	103,500
Net operating income	$50,500

If the company sells 7,600 units, its net operating income should be closest to:

$46,000

$48,500

$50,500

$49,979

7.

Dybala Corporation's produces and sells a single product. Data concerning that product appear below:

	Per Unit	Percent of Sales
Selling price	$150	100%
Variable expenses	75	50%
Contribution margin	$ 75	50%

The company is currently selling 4,800 units per month. Fixed expenses are $302,600 per month. The marketing manager believes that a $7,200 increase in the monthly advertising budget would result in a 210 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Decrease of $7,200

Increase of $8,550

Decrease of $8,550

Increase of $15,750

8.

Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)

Selling price per unit	$	180.00
Variable expense per unit	$	68.40
Fixed expense per month	$	130,200

The break-even in monthly dollar sales is closest to:

$210,000

$289,800

$130,200

$420,000

9.

Data concerning Cutshall Enterprises Corporation's single product appear below:

Selling price per unit	$	245.00
Variable expense per unit	$	100.00
Fixed expense per month	$	455,840

The unit sales to attain the company's monthly target profit of $36,000 is closest to: (Do not round your intermediate calculations.)

3,144

2,008

4,918

3,392

10.

A cement manufacturer has supplied the following data:

Tons of cement produced and sold	240,000
Sales revenue	$944,000
Variable manufacturing expense	$225,000
Fixed manufacturing expense	$292,000
Variable selling and administrative expense	$105,400
Fixed selling and administrative expense	$86,000
Net operating income	$235,600

The company's contribution margin ratio is closest to:

45.2%

65.0%

69.1%

25.0%

11.

Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below:

Sales (5,000 units)	$	295,000
Variable expenses		100,000
Contribution margin		195,000
Fixed expenses		105,800
Net operating income	$	89,200

Required:

Redo the company's contribution format income statement assuming that the company sells 5,200 units.

Net operating income ___________________

12.

The contribution margin ratio of Donath Corporation's only product is 66%. The company's monthly fixed expense is $454,600 and the company's monthly target profit is $40,600.

Required:

Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest dollar amount.)

Sales __________

13.

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

Selling price	$149
Units in beginning inventory	0
Units produced	2,770
Units sold	2,520
Units in ending inventory	250
Variable costs per unit:
Direct materials	$51
Direct labor	$20
Variable manufacturing overhead	$10
Variable selling and administrative	$12
Fixed costs:
Fixed manufacturing overhead	$96,950
Fixed selling and administrative expenses	$35,280

The total gross margin for the month under absorption costing is:

$83,160

$17,640

$130,320

$141,120

14.

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

Units in beginning inventory	0
Units produced	4,700
Units sold	4,600
Units in ending inventory	100

Variable costs per unit:

Direct materials	$	55
Direct labor	$	57
Variable manufacturing overhead	$	20
Variable selling and administrative	$	18

Fixed costs:

Fixed manufacturing overhead	$	98,700
Fixed selling and administrative	$	46,000

What is the variable costing unit product cost for the month?

$150 per unit

$171 per unit

$132 per unit

$139 per unit

15.

Bartelt Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced	1,000
Variable costs per unit:
Direct materials	$50
Direct labor	$47
Variable manufacturing overhead	$2
Variable selling and administrative expense	$8
Fixed costs:
Fixed manufacturing overhead	$31,000
Fixed selling and administrative expense	$69,000

There were no beginning or ending inventories. The absorption costing unit product cost was:

$97 per unit

$130 per unit

$99 per unit

$207 per unit

16.

Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $9.20 per direct labor-hour. The production budget calls for producing 4,400 units in June and 4,900 units in July.

Required:

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.)

JUNE JULY

Required production in units ___________ ___________

Direct labor hours per unit ___________ ___________

Total direct labor hours needed ___________ ___________

Direct labor cost per hour ___________ ___________

Total direct labor cost ___________ ___________

1.

The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March.

Corporate headquarters building lease	$87,600
Cosmetics Department sales commissions--Northridge Store	$5,230
Corporate legal office salaries	$60,500
Store manager's salary-Northridge Store	$17,200
Heating-Northridge Store	$20,200
Cosmetics Department cost of sales--Northridge Store	$37,400
Central warehouse lease cost	$11,100
Store security-Northridge Store	$18,900
Cosmetics Department manager's salary--Northridge Store	$4,150

The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

$42,630

$46,780

$101,130

$37,400

2.

Erkkila Inc. reports that at an activity level of 7,300 machine-hours in a month, its total variable inspection cost is $425,030 and its total fixed inspection cost is $192,204.

What would be the average fixed inspection cost per activity unit at an activity level of 7,600 machine-hours in a month? Assume that this level of activity is within the relevant range.

rev: 03_22_2017_QC_CS-83283

$25.29

$84.55

$26.33

$31.89

3.

Younger Corporation reports that at an activity level of 3,000 units, its total variable cost is $147,570 and its total fixed cost is $75,144.

Required:

For the activity level of 3,100 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range. (Round your "Average cost" to 2 decimal places and other answers to the nearest dollar amount.)

a) Total variable cost _________________

b) Total fixed cost _________________

c) Total cost _________________

d) Average variable cost _________________ per unit

e) Average fixed cost _________________ per unit

f) Average total cost _________________ per unit

4.

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Activities	Activity Rate
Setting up batches	$94.25	per batch
Processing customer orders	$83.89	per customer order
Assembling products	$18.11	per assembly hour

Data concerning two products appear below:

	Product V09X	Product A09X
Number of batches	71	14
Number of customer orders	22	11
Number of assembly hours	494	699

How much overhead cost would be assigned to Product V09X using the activity-based costing system?

$196.25

$192,320.37

$17,483.67

$6,691.75

5.

Jeanlouis, Inc., manufactures and sells two products: Product D0 and Product D5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product D0	Product D5	Total
Labor-related	DLHs	$313,743	3,600	3,300	6,900
Production orders	orders	70,264	300	500	800
General factory	MHs	253,555	4,300	4,200	8,500
		$637,562

The total overhead applied to Product D5 under activity-based costing is closest to:

$319,252

$125,286

$304,920

$273,240

6.

Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March.

Sales (7,700 units)	$400,400
Variable expenses	246,400
Contribution margin	154,000
Fixed expenses	103,500
Net operating income	$50,500

If the company sells 7,600 units, its net operating income should be closest to:

$46,000

$48,500

$50,500

$49,979

7.

Dybala Corporation's produces and sells a single product. Data concerning that product appear below:

	Per Unit	Percent of Sales
Selling price	$150	100%
Variable expenses	75	50%
Contribution margin	$ 75	50%

The company is currently selling 4,800 units per month. Fixed expenses are $302,600 per month. The marketing manager believes that a $7,200 increase in the monthly advertising budget would result in a 210 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Decrease of $7,200

Increase of $8,550

Decrease of $8,550

Increase of $15,750

8.

Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)

Selling price per unit	$	180.00
Variable expense per unit	$	68.40
Fixed expense per month	$	130,200

The break-even in monthly dollar sales is closest to:

$210,000

$289,800

$130,200

$420,000

9.

Data concerning Cutshall Enterprises Corporation's single product appear below:

Selling price per unit	$	245.00
Variable expense per unit	$	100.00
Fixed expense per month	$	455,840

The unit sales to attain the company's monthly target profit of $36,000 is closest to: (Do not round your intermediate calculations.)

3,144

2,008

4,918

3,392

10.

A cement manufacturer has supplied the following data:

Tons of cement produced and sold	240,000
Sales revenue	$944,000
Variable manufacturing expense	$225,000
Fixed manufacturing expense	$292,000
Variable selling and administrative expense	$105,400
Fixed selling and administrative expense	$86,000
Net operating income	$235,600

The company's contribution margin ratio is closest to:

45.2%

65.0%

69.1%

25.0%

11.

Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below:

Sales (5,000 units)	$	295,000
Variable expenses		100,000
Contribution margin		195,000
Fixed expenses		105,800
Net operating income	$	89,200

Required:

Redo the company's contribution format income statement assuming that the company sells 5,200 units.

Net operating income ___________________

12.

The contribution margin ratio of Donath Corporation's only product is 66%. The company's monthly fixed expense is $454,600 and the company's monthly target profit is $40,600.

Required:

Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest dollar amount.)

Sales __________

13.

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

Selling price	$149
Units in beginning inventory	0
Units produced	2,770
Units sold	2,520
Units in ending inventory	250
Variable costs per unit:
Direct materials	$51
Direct labor	$20
Variable manufacturing overhead	$10
Variable selling and administrative	$12
Fixed costs:
Fixed manufacturing overhead	$96,950
Fixed selling and administrative expenses	$35,280

The total gross margin for the month under absorption costing is:

$83,160

$17,640

$130,320

$141,120

14.

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

Units in beginning inventory	0
Units produced	4,700
Units sold	4,600
Units in ending inventory	100

Variable costs per unit:

Direct materials	$	55
Direct labor	$	57
Variable manufacturing overhead	$	20
Variable selling and administrative	$	18

Fixed costs:

Fixed manufacturing overhead	$	98,700
Fixed selling and administrative	$	46,000

What is the variable costing unit product cost for the month?

$150 per unit

$171 per unit

$132 per unit

$139 per unit

15.

Bartelt Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced	1,000
Variable costs per unit:
Direct materials	$50
Direct labor	$47
Variable manufacturing overhead	$2
Variable selling and administrative expense	$8
Fixed costs:
Fixed manufacturing overhead	$31,000
Fixed selling and administrative expense	$69,000

There were no beginning or ending inventories. The absorption costing unit product cost was:

$97 per unit

$130 per unit

$99 per unit

$207 per unit

16.

Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $9.20 per direct labor-hour. The production budget calls for producing 4,400 units in June and 4,900 units in July.

Required:

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.)

JUNE JULY

Required production in units ___________ ___________

Direct labor hours per unit ___________ ___________

Total direct labor hours needed ___________ ___________

Direct labor cost per hour ___________ ___________

Total direct labor cost ___________ ___________