6.

Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March.

Sales (7,700 units)	$400,400
Variable expenses	246,400
Contribution margin	154,000
Fixed expenses	103,500
Net operating income	$50,500

If the company sells 7,600 units, its net operating income should be closest to:

$46,000

$48,500

$50,500

$49,979

8.

Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)

Selling price per unit	$	180.00
Variable expense per unit	$	68.40
Fixed expense per month	$	130,200

The break-even in monthly dollar sales is closest to:

$210,000

$289,800

$130,200

$420,000

16.

Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $9.20 per direct labor-hour. The production budget calls for producing 4,400 units in June and 4,900 units in July.

Required:

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.)

JUNE JULY

Required production in units ___________________ ____________________

Direct labor hours per unit ___________________ ____________________

Total direct labor hours needed ___________________ ____________________

Direct labor hours cost per hour ___________________ ____________________

Total direct labor cost ___________________ ____________________

17.

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.

Standard hours per unit of output	4.40	machine-hours
Standard variable overhead rate	$11.55	per machine-hour

The following data pertain to operations for the last month:

Actual hours	8,800	machine-hours
Actual total variable manufacturing overhead cost	$95,910
Actual output	1,900	units

What is the variable overhead efficiency variance for the month?

$2,832 U

$7,293 F

$5,082 U

$7,293 U