1.Perdon Corporation manufactures safeslarge mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Perdon is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be allocated to each product line. The information shown below relates to overhead.

Mobile Safes Walk-in Safes

Units planned for production 190 51

Material moves per product line 290 300

Purchase orders per product line 450 360

Direct labor hours per product line 810 1,690

The total estimated manufacturing overhead of $280,000was comprised of $170,000for materials handling costs and $110,000for purchasing activity costs. Under activity-based costing (ABC)

Compare the amount of overhead allocated to one mobile safe and to one walk-in safe under the traditional costing approach versus under ABC

Traditional Costing Activity-Based Costing

Mobile safe $__________ $__________

Walk-in safe $___________ $__________

2.Bruno Company accumulates the following data concerning a mixed cost, using miles as the activity level.

Miles Driven Total Cost Miles Driven Total Cost

JAN 8,020 $14,155 MARCH 8,510 $15,010

FEB 7,490 13,480 APRIL 8,190 14,495

Compute the fixed cost elements using the high-low method.

Fixed costs $______

3.For Astoria Company, actual sales are $11,226,000, and break-even sales are $6,209,000.

Compute the margin of safety ratio. (Round margin of safety ratio to 0 decimal places, e.g. 1,225.)

Margin of safety ratio ____%

4.The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $50a night. Operating costs are as follows.

Salaries$5,000per month

Utilities$1,000per month

Depreciation$900per month

Maintenance$1,100per month

Maid service$10per room

Other costs $20 per room

Determine the inn's break-even point in dollars.

Break-even point $______

5.Naylor Company had $150,600of net income in 2016 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,600. Management expects per unit data and total fixed costs to remain the same in 2017. The president of Naylor Company is under pressure from stockholders to increase net income by $60,600in 2017.

Compute the number of units that would have to be sold in 2017 to reach the stockholders' desired profit level.

_______ Units

6.Russell Inc. had sales of $2,350,000for the first quarter of 2017. In making the sales, the company incurred the following costs and expenses.

Variable Fixed

Cost of goods sold $939,000 $459,000

Selling expenses 114,000 55,000

Administrative expenses 88,000 116,000

make CVP income statement for the quarter ended March 31, 2017.

Russel Inc.

CVP income statement

_____________

_________ $_________

_________ _________

_________ ___________

_________ __________

_________ $_________

word bank

For the Month Ended March 31, 2017

For the Quarter Ended March 31, 2017

March 31, 2017

Administrative Expenses

Contribution Margin

Cost of Goods Sold

Fixed CostsGross Profit

Net Income/(Loss)

Sales

Selling Expenses

Variable Costs