| $94,700 3. | In September direct labor was 45% of conversion cost. If the manufacturing overhead for the month was $80,300 and the direct materials cost was $22,400, the direct labor cost was: | rev: 06_06_2013_QC_31398, 09_24_2013_QC_36205 | $35,033 | | $65,700 | | $120,700 | | $51,700 | 4. | A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3,780 and is paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and 20% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage? | 5. | Ladanza Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $154.00 per unit. | | Sales volume (units) | 14,300 | 15,880 | | Cost of sales | $1,144,000 | $1,270,400 | | Selling and administrative costs | $655,000 | $683,440 | The best estimate of the total contribution margin when 15,540 units are sold is: | $248,970 | | $984,270 | | $336,170 | | $870,240 | 6. | Carbaugh Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. | | Production volume | 4,400 | units | 5,400 | units | | Direct materials | $77.90 | per unit | $77.90 | per unit | | Direct labor | $50.20 | per unit | $50.20 | per unit | | Manufacturing overhead | $74.30 | per unit | $68.30 | per unit | | The best estimate of the total cost to manufacture 5,100 units is closest to: (Do not round intermediate calculations.) | | $1,016,265 | | $1,009,560 | | $1,027,440 | | $978,270 | 7. The following data pertains to activity and the cost of cleaning and maintenance for two recent months: | Month 1 | Month 2 | | Production volume | 2,400 | units | 3,100 | units | | Cleaning and maintenance costs | $1,000 | | $1,210 | | | The best estimate of the total month 1 variable cost for cleaning and maintenance is: (Do not round intermediate calculations.) | 8. | At an activity level of 8,500 machine-hours in a month, Nooner Corporation's total variable production engineering cost is $708,900 and its total fixed production engineering cost is $168,210. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 8,900 machine-hours in a month? Assume that this level of activity is within the relevant range. (Do not round intermediate calculations.) | | $101.95 | | $101.41 | | $102.48 | | $102.30 | 9. Supply costs at Lattea Corporation's chain of gyms are listed below: | Client-Visits | Supply Cost | | March | 11,660 | $28,574 | | April | 11,456 | $28,408 | | May | 11,988 | $28,832 | | June | 13,300 | $28,918 | | July | 11,720 | $28,635 | | August | 11,206 | $28,234 | | September | 12,000 | $28,833 | | October | 11,691 | $28,591 | | November | 11,839 | $28,716 | | Management believes that supply cost is a mixed cost that depends on client-visits. Using the high-low method to estimate the variable and fixed components of this cost, those estimates would be closest to:(Round your Variable cost per unit to 2 decimal places.) | | $2.02 per client-visit; $28,636 per month | | $.91 per client-visit; $17,471 per month | | $0.37 per client-visit; $24,024 per month | | $0.33 per client-visit; $24,529 per month | 10. Buckeye Company has provided the following data for maintenance cost: | Prior Year | Current Year | | Machine hours | 14,100 | 17,000 | | Maintenance cost | $28,200 | $31,970 | | The best estimate of the cost formula for maintenance would be: (Do not round intermediate calculations. Round your Variable cost per unit to 2 decimal places.) | | $9,870 per year plus $1.30 per machine hour | | $28,200 per year plus $1.30 per machine hour | | $9,870 per year plus $.769 per machine hour | | $22,100 per year plus $.769 per machine hour | 11. | Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. | | Production volume | 13,700 | units | 15,000 | units | | Direct materials | $911,050 | | $997,500 | | | Direct labor | $239,750 | | $262,500 | | | Manufacturing overhead | $1,008,400 | | $1,025,820 | | | The best estimate of the total monthly fixed manufacturing cost is: (Do not round intermediate calculations.) | | $832,320 | | $827,820 | | $821,820 | | $824,820 | 12. | Nikkel Corporation, a merchandising company, reported the following results for July: | | Sales | $447,000 | | Cost of goods sold (all variable) | $170,500 | | Total variable selling expense | $ 20,100 | | Total fixed selling expense | $ 21,600 | | Total variable administrative expense | $ 8,500 | | Total fixed administrative expense | $ 31,300 | | The gross margin for July is: | | $195,000 | | $247,900 | | $394,100 | | $276,500 | 13. | Nikkel Corporation, a merchandising company, reported the following results for July: | | Sales | $433,000 | | Cost of goods sold (all variable) | $174,800 | | Total variable selling expense | $ 25,600 | | Total fixed selling expense | $ 15,100 | | Total variable administrative expense | $ 14,800 | | Total fixed administrative expense | $ 31,400 | | The contribution margin for July is: | | $171,300 | | $386,500 | | $217,800 | | $258,200 | 14. | Salvadore Inc., a local retailer, has provided the following data for the month of September: | | Merchandise inventory, beginning balance | $ 45,000 | | Merchandise inventory, ending balance | $ 45,600 | | Sales | $263,500 | | Purchases of merchandise inventory | $135,800 | | Selling expense | $ 19,700 | | Administrative expense | $ 60,900 | | The net operating income for September was: | | $127,700 | | $128,700 | | $49,900 | | $47,700 | 15. Lettman Corporation has provided the following partial listing of costs incurred during November: | | | | Marketing salaries | $ | 47,600 | | Property taxes, factory | $ | 14,600 | | Administrative travel | $ | 104,500 | | Sales commissions | $ | 55,300 | | Indirect labor | $ | 42,000 | | Direct materials | $ | 167,200 | | Advertising | $ | 145,300 | | Depreciation of production equipment | $ | 42,000 | | Direct labor | $ | 95,700 | | Required: | a. | What is the total amount of product cost listed above? (Omit the "$" sign in your response.) | | b. | What is the total amount of period cost listed above? (Omit the "$" sign in your response.) | 16. | Daguio Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $195,200. At the end of the year, actual direct labor-hours for the year were 16,500 hours, manufacturing overhead for the year was underapplied by $12,000, and the actual manufacturing overhead was $190,200. The predetermined overhead rate for the year must have been: | | $10.80 per direct labor-hour | | $11.74 per direct labor-hour | | $11.46 per direct labor-hour | | $9.93 per direct labor-hour | |
