Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income?

A.40

B.120

C.20

D.60

Rene is working with the operations manager to determine what the standard labor cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what each employee does. The first employee selects and mills the wood, so it is smooth on all four sides. This takes the employee 1 hour for each chest. The next employee takes the wood and cuts it to the proper size. This takes 30 minutes. The next employee assembles and sands the chest. Assembly takes 2 hours. The chest then goes to the finishing department. It takes 1.5 hours to finish the chest. All employees are cross-trained so they are all paid the same amount per hour, $14.30.

A. What are the standard hours per chest?

Standard hour per chest hours

B. What is the standard cost per chest for labor? Round your answer to two decimal places.

Standard cost per chest $

Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit):

	Standard Quantity	x	Standard Price	=	Standard Cost
Direct materials	3 pounds		$4.40 per pound		$13.20
Direct labor	2.00 hours		12.00 per hour		24.00
Total cost					$37.20

Sitka Industries made 3,000 ladders in July and used 8,800 pounds of material to make these units. Sitka Industries bought 15,600 pounds of material in the current period. There was a $200 unfavorable direct materials price variance.

Enter all amounts as positive numbers.

A. How much in total did Sitka pay for the 15,600 pounds?

Amount paid $

B. What is the direct materials quantity variance?

Direct materials quantity variance $

C. What is the total direct materials cost variance?

Total direct materials cost variance $

D. What if 9,500 pounds were used to make these ladders, what would be the direct materials quantity variance?

Direct materials quantity variance $

E. If there was a $350 favorable direct materials price variance, how much did Sitka pay for the 15,600 pounds of material?

Amount paid $