1-Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are:

	M			N			O
Unit sales price	$	14		$	10		$	13
Unit variable costs		7			6			10

Total fixed costs are $449,500. The selling price per composite unit for the current sales mix (rounded to the nearest cent) is:

Multiple Choice

• $37.00.

• $ 12.33.

• $41.00.

• $78.00.

• $52.00.

2-Ship Co. produces storage crates that require 35.0 meters of material at $0.30 per meter and 0.30 direct labor hours at $13.00 per hour. Overhead is applied at the rate of $11 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?

Multiple Choice

• $34.50.

• $25.40.

• $7.20.

• $14.40.

• $17.70.

3-

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage.

	Purchasing				Maintenance				Fabrication				Assembly
Operating costs	$	38,000			$	21,600			$	102,000			$	68,000
No. of purchase orders										16				4
Sq. ft. of space										3,600				2,400

Required: Compute the amount of Purchasing department expense to be allocated to Assembly

Multiple Choice

• $7,600.

• $12,960.

• $8,640.

• $17,100.

• $30,400.

4-Carlys Clips charges for their grooming services based on the following:

Direct labor rate	$	70	per hour
Materials markup		25	%

Using time and materials pricing, what is the total price for a job requiring 3 direct labor hours and $60 of materials?

Multiple Choice

• $225.

• $270.

• $285.

• $210.

• $300.