Assuming that the unit sales are unchanged, the total contribution margin will decrease if:

	a.	fixed expenses increase.
	b.	fixed expenses decrease.
	c.	variable expense per unit decreases.
	d.	variable expense per unit increases.

Part B The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below.

Product	Number of units	Labor hrs per unit	Machine hours per unit
Blinks	1,000	4	5
Dinks	2,000	2	8

All of the machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000. The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Blinks?

a.

$78.00

b.

$19.50

c.

$37.45

d.

$56.00

Part C

The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below.

Product	Number of units	Labor hrs per unit	Machine hours per unit
Blinks	1,000	4	5
Dinks	2,000	2	8

All of the machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000. The Ramapo Company uses the ABC method and applies overhead by department. What is the overhead cost per unit for Blinks?

Part D

The total of the dollar amounts on the job order cost cards for jobs that have not been completed would be equal to the

	a.	cost of goods completed.
	b.	balance in the Finished Goods Inventory account.
	c.	Cost of Goods Sold account.
	d.	balance in the Work in Process Inventory account.