1. The following is a list of various costs of producing shirts, Classify cach cost as either a variable, fixed, or mixed cost for units produced and sold. (a) Hourly wages of sewing machine operators. (b) Warchouse rent of $8,000 per month. (c) Electricity costs of $0.049 per kilowatt-hour. (d) Salary of the production supervisor. (e) Property taxes on factory, building, and equipment. (f) Salary of the night-time security guard of $3,800 per month. (g) Cotton and polyester cloth. (h) Advertising costs of $12,000 per month. (i) Sales commissions of $6,000 plus $0.05 for each item sold. (j) Straight-line depreciation on sewing machines. (k) Buttons for the shirts. (1) Maintenance costs with sewing machine company - the cost is $2,000 per year plus $0,001 for cach machine hour of use. 2. The total factory overhead for the Brandon Motorboat Company is budgeted for the year at $00,000 divided into two departments: Fabrication, \$570,000, and Assembly, \$230,000. The company makes two types'of boats: speedboats and bass boats. The speedboats require 8 direct labor hours in Fabrication and 4 direct labor hours in Assembly. The bass boats require 4 direct labor hours in Fabrication and 8 direct labor hours in Assembly. Each product is budgeted for 250 units of production for the year. Determine the following: (a) the total number of budgeted direct labor hours for the year in each department (b) the departmental factory overhead nates for both departments (c) the factory overhead allocated per unit for each produet using department factory overhead allocation rates. 3. Silver Company sells 26,000 units at $60 per unit. Variable costs are $32 per unit, and fixed costs are $800,000. Deternine the following: (a) unit contribution margin (b) contribution margin ratio (c) operating income (Income from operations) 4. Department A had 6,000 units of work in process that were 60% completed at the beginning of the period; 31,000 units were completed and transferred during the period; and 3,000 units were 80% completed at the end of the period. All materials were added at the beginning of the process. Determine the number of equivalent units for (a) direct materials and (b) conversion. 5. On April 6, Abererombie Company purchased on account 70,000 units of raw materials at $15 per unit. On April 21, raw materials were requisitioned for production as follows: 25,000 units for Job 50 at $12 per unit 27,000 units for Job 51 at $15 per unit. Joumalize the eniry on April 6 to record the purchase and on April 21 to record the requisition from the materials showroom. 6. The following is a list of costs that were incurred in producing a textbook. Please indicate whether each cost is: (a) a product or period cost, and (b) if it is a product cost, whether it is a direct material, direct labor, or factory overhead cost. (a) Insurance on the factory building and equipment (b) Salary of the vice president of finance (c) Hourly wages of printing press operators during production (d) Straight-line depreciation on the printing presses used to marnfacture the textbook (c) Straight-line depreciation on the office building (f) Electricity used to nin the presses during the printing of the textbook (g) Sales commissions pard to textbook representatives for each textbook sold (h) Paper on which the textbook is printed (1) Book covers used to bind the pages (j) Salaries of staff used to develop artwork for the textbook (k) Glue used to bind pages to cover (1) Salary of quality control supervisor who inspects each textbook before it is shipped (m) Plant manager's salary (a) Maintenance supplies (o) Property taxes on the headquarters building (p) Factory supervisors' salaries (q) Travel costs of marketing executives to annual sales mecting (r) Supplies used by the Accounting Department in preparing vanous managerial reports (s) Fees paid to lawn service for office grounds upikeep (t) Cost for marketing at a national conference (u) Attomey fees for drafting a new lease for headquarters offices (v) License fees for use of patent for printing press, based on number of textbooks produce 7. The DeWayne Company sells binoculars for $150 per unit. The variable cost is $100 per unat while the fixed costs are $1,000,000. Compute the following 2. The anticipated break-even sales (units) for binoculars. b. The sales (units) for binoculars required to realize target operating income of $400,000. c. Determine the probable operating income (loss) if sales total 32,000 unats. d. If selling price goes up to $165 per unit while all costs remain the same, what is the new break-even pount? 8. Blue River Inc. produces horse and rancher equipment. The company's production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of employees and square feet. respectively. The total cost of the Security Department is $2$3,000. The total cost of the Cafeteria Departmeat is $185,000. The number of employees and the square footage in each department are as follows: Using the reciprocal services method of support department cost allocation, determane the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments