4. A.

1. Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 622,000 units, estimated beginning inventory is 106,000 units, and desired ending inventory is 86,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A 0.50 lb. per unit @ $0.58 per pound Material B 1.00 lb. per unit @ $1.62 per pound Material C 1.20 lb. per unit @ $0.93 per pound The dollar amount of Material B used in production during the year is

   a. $1,170,288

   b. $975,240

   c. $780,192

   d. $1,462,860

4. B.

1. Jase Manufacturing Co.'s static budget at 7,700 units of production includes $30,800 for direct labor and $3,080 for electric power. Total fixed costs are $44,800. At 10,900 units of production, a flexible budget would show

   a. variable costs of $47,960 and $44,800 of fixed costs

   b. variable and fixed costs totaling $78,680

   c. variable costs of $47,960 and $63,418 of fixed costs

   d. variable costs of $33,880 and $44,800

4, C..

1. Assume that Corn Co. sold 6,600 units of Product A and 3,400 units of Product B during the past year. The unit contribution margins for Products A and B are $28 and $55, respectively. Corn has fixed costs of $370,000. The break-even point in units is

   a. 14,927 units

   b. 11,942 units

   c. 7,961 units

   d. 9,952 units