1-Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,000 units of Fluoro2211 are as follows.

Per Unit Data

Selling Price $150

Direct Materials 20

Direct Labor 15

Variable Manufacturing Overhead 12

Fixed Manufacturing Overhead 30

Variable Selling 3

Fixed Selling and Administrative 10

Total Costs 90

Operating Margin $60

During the next year, sales of Fluoro2211 are expected to be 10,000 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and material, which will increase by 10%. The selling price per unit for next year will be $160. Based on these data, Razor Inc.'s total contribution margin for next year will be?

2- South Beach Industries reports the following information about resources. At the beginning of the year, South Beach estimated it would spend $180,000 for materials, $42,000 for purchasing, $35,000 for setups, and $36,000 for repairs.

Cost Driver

Rate Volume

Resources used

Materials $10/lb 18,350 lbs

Purchasing $250/purchase order 160 purchase orders

Setups $450/setup 80 setups

Repairs 36 700 jobs

Resources supplied

Materials $192,700

Purchasing 44,300

Setups $37,500

Repairs 30,000

Compute unused resource capacity for purchasing for South Beach.

3- Upton Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, Long and Short, about which it has provided the following data:

Long Short

Direct materials per unit $14.20 $48.30

Direct labor per unit $16.80 $50.40

Direct labor-hours per unit 0.80 2.40

Annual production 45,000 10,000

The company's estimated total manufacturing overhead for the year is $3,170,400 and the company's estimated total direct labor-hours for the year is 60,000.

The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

Activities and Activity Measures Estimated Overhead Cost

Direct labor support (DLHs) $1,740,000

Setting up machines (setups) 422,400

Part administration (part types) 1,008,000

Total $3,170,400

Expected Activity

Long Short Total

DLHs 36,000 24,000 60,000

Setups 1,140 1,500 2,640

Part types 900 2,460 3,360

Unit product cost of Product Short under the activity-based costing system is?

4) Cahuilla Corporation predicts the following sales in units for the coming four months:

April May June July

Sales in Units 240 280 300 240

Each month's ending Finished Goods inventory should be 40% of the next month's sales March 31 Finished Goods inventory is 96 units. A finished unit requires five pounds of direct material B. The March 31 Raw Materials inventory has 200 pounds of B. Each month's ending Raw Materials inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be?

5) Sydney Corporation estimated that machine-hours for the year would be 20,000 hours and overhead (all fixed) would be $80,000. Sydney applies its overhead on the basis of machinehours. During the year, all overhead costs were exactly as planned ($80,000). There was $11,000 in overapplied overhead.

Required:

How many machine-hours were worked during the period?