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correct answers will be given thumbs up thanks H&B Inc. uses a standard cost system and calculates their application rates using direct labour hours. This
correct answers will be given thumbs up thanks
H&B Inc. uses a standard cost system and calculates their application rates using direct labour hours. This year the company had the following standards: Standard direct labour hours per unit: 2 hours Variable overhead application rate: $5 per direct labour hour Fixed overhead application rate: $7 per direct labour hour The company also had the following actuals: Production: 17,000 units Variable overhead: $195,840 Fixed overhead: $271,320 Total direct labour hours: 40,800 What is the variable overhead spending variance? a) $8,160 favourable b) $8,160 unfavourable c) $25,840 unfavourable d) $25,840 favourable Sunny Dayz sells bottles of sun screen lotion for $8.00 each. Variable costs are $4.50 per bottle, while fixed costs are $42,000 per month for volumes up to 20,000 bottles of lotion and $52,000 per month for volumes above 20,000 bottles of lotion. The flexible budget would reflect monthly operating income for 18,000 bottles of lotion and 23,000 bottles of lotion of what dollar amounts? a) $21,000 and $28,500, respectively b) $11,000 and $38,500, respectively c) $102,000 and $132,000, respectively d) $18,000 and $28,000, respectively e) $92,000 and $142,000, respectively Rounding / Entry Rules: Follow the rules on the Final Exam Information Sheet. Question: The following is Bord Corporation's contribution margin income statement for the year. Sales S 2,700,000 Variable expenses 2,160,000 Contribution margin 540,000 Fixed expenses 300,000 Operating income S 240,000 Bord Corporation sold 5,000 units during the year. Required: Using cost-volume-profit analysis, answer the following questions. What is the company's contribution margin ratio? A What is the company's breakeven sales in units? A/ If sales increase by 200 units, by how much should operating income increase? A How many units would the company have to sell to attain target operating income of $555,000? A What is the company's margin of safety in dollars? A What is the company's degree of operating leverageStep by Step Solution
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