Answered step by step
Verified Expert Solution
Question
1 Approved Answer
attached here is the questions 1.) The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. Variable manufacturing overhead costs
attached here is the questions
1.) The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. Variable manufacturing overhead costs Fixed manufacturing overhead costs Normal production level in labor hours Normal production level in units Standard labor hours per unit $69,300 $41,580 23,100 5,775 4 During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $113,400. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Fergie's volume overhead variance is...... 2.) Mink Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $60 and Mink would sell it for $130. The cost to assemble the product is estimated at $42 per unit and the company believes the market would support a price of $170 on the assembled unit. What decision should Mink make? A:Process further, the company will be better off by $58 per unit. B:Sell before assembly, the company will be better off by $2 per unit. C:Process further, the company will be better off by $28 per unit. D:Sell before assembly, the company will be better off by $40 per unit. 3.) A company has three product lines, one of which reflects the following results: Sales Variable expenses $430,000 250,000 Contribution margin Fixed expenses 180,000 280,000 Net loss $ (100,000) If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will..... 4.) How is annual cash inflow determined? A:Depreciation is subtracted from net income because it is an expense. B:Depreciation is subtracted from net income because it is an outflow of cash. C:Depreciation is added back to net income because it is not an outflow of cash. D: Depreciation is added back to net income because it is an inflow of cash. 5.) A company can produce and sell only one of the following two products: Product 1 Product 2 Machine Hours Required Contribution Margin Per Unit 3 2 $60 $50 If the company has machine capacity of 2,000 hours, what is the total contribution margin of the product it should produce to maximize net incomeStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started