1-1. Erkkila Inc. reports that at an activity level of 7,200 machine-hours in a month, its total variable inspection cost is $424,880 and its total fixed inspection cost is $187,800. What would be the average fixed inspection cost per unit at an activity level of 7,500 machine-hours in a month? Assume that this level of activity is within the relevant range.

$25.04

$85.09

$26.08

$32.93

1-2. Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.08 direct labor-hours. The direct labor rate is $8.20 per direct labor-hour. The production budget calls for producing 5,500 units in June and 6,000 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 units

Direct Labor-hours Per Unit

Total Direct Labor-hours needed

Direct Labor Costs per hour

Total Direct Labor Cost

1-3. A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours. Standard hours per unit of output 5.10 machine-hours Standard variable overhead rate $11.20 per machine-hour

The following data pertain to operations for the last month: Actual hours 8,600 machine-hours Actual total variable manufacturing overhead cost $95,980 Actual output 1,600 units

What is the variable overhead efficiency variance for the month?

$2,532 U

$7,093 F

$4,928 U

$7,093 U

1-4. Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $18,010,000 Net operating income $810,450 Average operating assets $4,530,000

The division's turnover is closest to: (Round your answer to 2 decimal places.)

22.22

3.98

0.18

5.59