1)Taco Ltd. sells microchips during the recruiting seasons. During the current year, 11,000 microchips were sold resulting in f440,000 of sales revenue, f1 10,000 of variable costs, and f48,000 of fixed costs. If sales increase by 160,000, operating income will increase by . [f45,000] 2) Dominic Inc. planned to use f150 of material per unit but actually used f147 of material per unit, and planned to make 1, 100 units but actually made 900 units. The sales-volume variance for materials is . [$30,000 unfavorable] 3) Lunicious Corporation currently produces baseball caps in an automated process. Expected production per month is 15,000 units, direct material costs are $3.50 per unit, and manufacturing overhead costs are f40,000 per month. Manufacturing overhead is entirely fixed costs. What is the flexible budget for 12,000 and 15,000 units, respectively? [E82,000; $92,500] 4) A&G Corporation manufactures industrial-sized gas furnaces and uses budgeted machine hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing overhead data: Budgeted output units 31,000 units Budgeted machine-hours 16,585 hours Budgeted variable manufacturing overhead costs for 16,585 hours f348,285 Actual output units produced 33,000 units Actual machine-hours used 14,400 hours Actual variable manufacturing overhead costs $384,000 What is the flexible-budget amount for variable manufacturing overhead? [ $370,755 ] 5) Ridez Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers: -Direct materials $50 Direct manufacturing labor 8 -Variable manufacturing overhead 12 Fixed manufacturing overhead 15 -Total manufacturing costs $85 The plant is considering expanding its current production level to 2,000 bicycles. It has capacity for 3,000 bicycles. What is the per unit cost of producing 2,000 bicycles? [$77.50 per unit] 6) Extracts from cost information of Hebar Corp.: Simple Complex L3 Pack L7 Pack Total Set-up cost allocated using direct labor-hours $18,750 6,250 125,000 Set-up cost allocated using set-up-hours (13,200 11,800 25,000 Which of the following statement is true of Hebar's set-up costs under traditional costing? [L3 pack is overcosted by $5,550] 7) Maize Plastics manufactures and sells 50 bottles per day. Fixed costs are $30,000 and the variable costs for manufacturing 50 bottles are f10,000. Each bottle is sold for $1,000. How would the daily profit be affected if the daily volume of sales drops by 10%? [profits are reduced by $4,000]
