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Cape Hatteras Corporation is a single product form. The company is predicting that a price increase next year will not cause unit sales to decrease.

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Cape Hatteras Corporation is a single product form. The company is predicting that a price increase next year will not cause unit sales to decrease. What effect would this price increase have on the following items for next year? A) B) C) D) Contribution Margin Ratio Increase Decrease Increase Decrease Break-even Point Decrease Decrease No effect No effect O Choice Choice D Choice B Choice A Hardigree Corporation has two production departments, Machining and Customizing. The company uses a job-order costi system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor- hour Machining Customizing 28.000 12.000 4000 10,000 $154,000 $39.000 $ 2.00 $ 3.30 During the current month the company started and finished Job T272. The following data were recorded for this job: Job T272: Machine-hours Direct labor-hours Machining 60 60 Customizing 30 20 The estimated total manufacturing overhead for the Machining Department is closest to: $178,000 O $154,000 $210,000 $56,000

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