1.Carver Packing Company reports total contribution margin of $72,000 and pretax net income of $24,000 for the current month. In the next month, the company expects sales volume to increase by 8%. The degree of operating leverage and the expected percent change in income, respectively, are: 3.0 and 8% 4.0 and 32% 0.33 and 8% 0.33 and 2.7% 3.0 and 24%

2.Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials quantity variance is: Direct materials standard (7 kg. @ $1.70/kg.) $11.90 per finished unit Actual cost of materials purchased $266,800 Actual direct materials purchased and used 144,000 kg $52,700 unfavorable. $22,000 unfavorable. $30,700 unfavorable. $52,700 favorable. $22,000 favorable.

3.Bengal Co. provides the following sales forecast for the next three months: July August September Sales units 4,900 5,600 5,460 The company wants to end each month with ending finished goods inventory equal to 30% of the next month's sales. Finished goods inventory on June 30 is 1,470 units. The budgeted production units for July are: 2,940 units. 6,580 units. 6,370 units. 3,430 units. 5,110 units.

4.A company's flexible budget for 10,000 units of production showed sales, $60,000; variable costs, $35,000; and fixed costs, $12,000. The operating income expected if the company produces and sells 14,000 units is (Do not round intermediate calculations): $13,000. $18,200. $23,000. $6,200. $32,500.

5.McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the contribution margin per composite unit. $330. $300. $285. $310. $200.

6.Jefferson Co. uses the following standard to produce a single unit of its product: variable overhead $7.20 (2 hrs. per unit @ $3.60/hr.). Actual data for the month show variable overhead costs of $183,720, and 24,600 units produced. The total variable overhead variance is: $95,160 U. $6,600 U. $95,160 F. $0. $6,600 F.

7.A department store has budgeted sales of 12,200 men's suits in September. Management wants to have 6,200 suits in inventory at the end of the month to prepare for the winter season. Beginning inventory for September is expected to be 4,200 suits. What is the dollar amount of the purchase of suits if each suit has a cost of $77. $939,400. $1,262,800. $1,093,400. $785,400. $1,416,800.

8.Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 200,000 in October, 208,500 in November, and 205,000 in December. Glaston assigns variable overhead at a rate of $0.80 per unit of production. Fixed overhead equals $157,000 per month. Compute the total budgeted overhead that would appear on the factory overhead budget for month of October. $160,000. $317,000. $323,800. $357,000. $157,000.

9.Zhang Industries sells a product for $725. Unit sales for May were 800 and each month's sales are expected to exceed the prior month's results by 2%. Zhang pays a sales manager a monthly salary of $4,000 and a commission of 1% of sales. Compute the projected selling expense to be reported on the selling expense budget for the manager for month ended June 30. $10,960. $9,684. $9,916. $6,798. $9,800.

10.During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $4 per unit, Direct labor, $2 per unit, Variable overhead, $3 per unit, and Fixed overhead, $160,000. The company produced 20,000 units, and sold 15,000 units, leaving 5,000 units in inventory at year-end. Income calculated under variable costing is determined to be $320,000. How much income is reported under absorption costing? $280,000 $480,000 $360,000 $320,000