76.

Assume a companys direct labor budget for September estimates 10,000 labor-hours to meet the months production requirements. The variable manufacturing overhead rate used for budgeting purposes is $3.00 per direct labor-hour. The budgeted fixed manufacturing overhead for September is $60,000 including $8,000 of depreciation. What is the total budgeted manufacturing overhead for September?

Multiple Choice

• $82,000

• $88,000

• $98,000

• $90,000

77.

Assume the following (1) selling price per unit = $30, (2) total fixed expenses = $8,720, (3) the contribution margin ratio = 20%, and (4) net operating income = $10,000. Given these four assumptions, unit sales must be:

Multiple Choice

• 4,056 units.

• 624 units.

• 2,496 units.

• 3,120 units.

78.

Assume a merchandising companys estimated sales for January, February, and March are $111,000, $131,000, and $121,000, respectively. Its cost of goods sold is always 45% of its sales. The company always maintains ending merchandise inventory equal to 20% of next months cost of goods sold. What are the required merchandise purchases for January?

Multiple Choice

• $48,150

• $51,750

• $59,250

• $58,950

79.

Assume that the cost formula for one of a companys variable expenses is $5.00 per unit. The companys planned level of activity was 2,000 units and its actual level of activity was 2,200 units. The spending variance was $250 unfavorable. What is the actual amount of this expense?

Multiple Choice

• $11,250

• $11,000

• $9,250

• $8,250

80.

Assume a company manufactures many products, one of which normally sells for $48 per unit. The companys accounting system reports the following unit product cost for this product:

	Per Unit
Direct materials		$	18
Direct labor			12
Manufacturing overhead			10
Total cost		$	40

The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced. The remainder of its overhead is fixed and unaffected by the volume of units produced within the relevant range. A customer has approached the company with an offer to buy 300 units of a customized version of the product mentioned above for $39. The company can fulfill this order using existing manufacturing capacity. To accommodate the customers desired product design, the company would incur additional direct materials cost per unit of $3. It would also have to buy a special tool for $430 that has no other use or resale value after the special order is completed. Assuming that accepting this order will not have any effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the special order?

Multiple Choice

• $470

• $900

• $(1,630)

• $(300)