16. The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the

HouseMate

for residences. Budgeted and actual operating data for the year 2017 were as follows:

Static Budget	Victor	House-Mate	Total
Number sold	6,500	26,000	32,500
Contribution margin	$1,560,000	$3,130,000	$4,690,000
Actual Results	Victor	House-Mate	Total
Number sold	5,200	37,000	42,200
Contribution margin	$1,400,000	$4,130,000	$5,530,000

What is the contribution margin for the flexible budget? (Round intermediary calculations to the nearest dollar.)

A.

$4,680,000

B.

$4,440,000

C.

$5,688,000

D.

$1,248,000

17. The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:

Direct Materials processed:

26,500

gallons (after shrinkage)

Production:	Butter Cream	12,000	gallons
	Condensed Milk	14,500	gallons
Sales:	Butter Cream	11,500	gallons
	Condensed Milk	14,000	gallons
Sales Price:	Butter Cream	$4.00	per gallon
	Condensed Milk	$8.00	per gallon
Separable costs intotal:	Butter Cream	$15,500
	Condensed Milk	$35,600

The cost of purchasing the of unprocessed milk and processing it up to the

splitoff

point to yield a total of

26,500

gallons of saleable product was

$54,000.

The company uses constant

grossmargin

percentage NRV method to allocate the joint costs of production. What is the constant

grossmargin

percent for Kenton?

A.

33.5%

B.

68.8%

C.

67.7%

D.

35.9%

19.

Electro Corp sells a refrigerator and a freezer as a single package for

$1,160.

Other data are in the chart below.

	Refrigerator	Fullsize Freezer	Packaged Price
Selling price	$880	$480	$1,160
Manufacturing cost per unit	$700	$220
Standalone product revenues	$1,350,000	$980,000

Using the

standalone

method with selling price as the weight for revenue allocation, what amount will be allocated to the refrigerator? (Do not round any intermediarycalculations.)

A.

$880.00

B.

$409.41

C.

$750.59

D.

$580.00

20.

The Conity Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a

$15,000,000

bond issuance, the Electric Mixer Division used

$9,200,000

and the Electric Lamp Division used

$5,800,000

for expansion. Interest costs on the bond totaled

$975,000

for the year. What amount of interest costs should be allocated to the Electric Mixer Division? (Round any intermediary calculations two decimal places and your final answer to the nearest dollar.)

A.

$594,750

B.

$9,200,000

C.

$5,800,000

D.

$604,339