Acct 101 MOCKtest2 Set B Name. SFSU ID# 3),[10% of test] At Q Company, the annual depreciation expenses for the production equipment are computed under an accelerated depreciation method, resulting in annually changing depreciation amounts. With respect to the production volume, the depreciation amount total level is a explain your ground concisely below cost [Select one: Fixed or Variable]. Ther, 6). Brannon Company manufactures ceiling fans and uses an activity-based costing system to allocate all manufacturing conversion costs. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows Activit Materials handlin Machinirn Assemblin Packa What is the total manufacturing cost per ceiling fan? Cost Allocation Rate Allocation Base Number of parts Machine hours Number of parts Number of finished units $.08 per part 7.20 per machine hour 35 per part 2.70 per finished unit [ 10 % of test PART II. Show your calculations in the spaces provided to avoid penalties.] uses a fleet of trucks in its business, and wants to know how distance affects these costs Month Miles driven 18,300 16,500 14,500 11,500 10,300 Using the high-low method, the variable cost per mile.is Again using the hi-lo method, the monthly fixed cost is Total operating costs $11,200 $10,700 S9,600 $7,020 $7,200 mile [i5% of test] anu Februa March Ma % of test] Q2 to Q4 use this case: John's Gym has sales of $100,000 this month, contribution margin of S60,000 and operating profit of $12,000. Contribution margin ratio is 60% of sales and monthly fixed expenses are $48,000. Q2. [25% of test|What is the breakeven in sales dollars? (a), The break-even ratio to current sales? (b)_ The firm's operating risk ratio? (c) Q3. What is the firm's current margin of safety ratio to sales [ie , safety ratio)? % [5% of test] Q4. What is the firm's operating leverage number?- -times [ 10 % of test] Q5. Use this case: BM Company sells two products, A and B. Product A sells for $10 per unit with variable costs of $8 per unit. Product B sells for $20 per unit with variable costs of $10 per unit. The ratio of total contribution margin to total sales dollars is 32%. Total fixed costs for the company are $40,000. BM Company typically sells three (3) Product A's for every Product B. [20% of test] a. What is the breakeven point in combined total sales revenue dollars? K b. Determine the breakeven point in numbers of A and B. Ans: units of A; units of B
