Fabio Corporation is considering eliminating a department that has a contribution margin of $38,000 and $76,000 in fixed costs. Of the fixed costs, $19,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:

The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March. Corporate headquarters building lease Cosmetics Department sales commissions--Northridge Store Corporate legal office salaries Store manager's salary-Northridge Store Heating-Northridge Store Cosmetics Department cost of sales--Northridge Store Central warehouse lease cost Store security-Northridge Store Cosmetics Department manager's salary--Northridge Store $80,100 $5,680 $61,900 $19,200 $13,100 $38,700 $8,600 $21,100 $4,460 The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are direct costs of the Cosmetics Department? Erkkila Inc. reports that at an activity level of 6,100 machine-hours in a month, its total variable inspection cost is $425,480 and its total fixed inspection cost is $166,656. What would be the average fixed inspection cost per activity unit at an activity level of 6,400 machine-hours in a month? Assume that this level of activity is within the relevant range. Younger Corporation reports that at an activity level of 2,600 units, its total variable cost is $117,390 and its total fixed cost is $71,415. Required: For the activity level of 2,700 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range. (Round your "Average cost" to 2 decimal places and other answers to the nearest dollar amount.) Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activities Setting up batches Processing customer orders Assembling products Activity Rate $93.00 per batch $82.83 per customer order $17.26 per assembly hour Data concerning two products appear below: Product V09X 69 20 492 Number of batches Number of customer orders Number of assembly hours Product A09X 12 9 697 How much overhead cost would be assigned to Product V09X using the activity-based costing system? Jeanlouis, Inc., manufactures and sells two products: Product D0 and Product D5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Activity Cost Pools Activity Measures Expected Activity Overhead Cost Product D0 Labor-related DLHs $313,743 3,600 Production orders orders 70,264 300 General factory MHs 253,555 4,300 Product D5 Total 3,300 6,900 500 800 4,200 8,500 $637,562 The total overhead applied to Product D5 under activity-based costing is closest to: Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March. Sales (6,300 units) Variable expenses Contribution margin Fixed expenses Net operating income $403,200 277,200 126,000 103,500 $22,500 If the company sells 6,200 units, its net operating income should be closest to: Dybala Corporation's produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price Variable expenses Contribution margin $170 85 $ 85 100% 50% 50% The company is currently selling 6,900 units per month. Fixed expenses are $531,400 per month. The marketing manager believes that a $7,300 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.) Selling price per unit Variable expense per unit Fixed expense per month $ 230.00 $ 75.90 $ 144,050 The break-even in monthly dollar sales is closest to: Data concerning Cutshall Enterprises Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month $ $ $ 150.00 90.50 426,390 The unit sales to attain the company's monthly target profit of $17,000 is closest to: (Do not round your intermediate calculations.) A cement manufacturer has supplied the following data: Tons of cement produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income The company's contribution margin ratio is closest to: 315,000 $1,019,000 $240,000 $337,000 $167,600 $101,000 $173,400 Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below: Sales (5,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 325,000 200,000 125,000 106,400 $ 18,600 Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.06 direct labor-hours. The direct labor rate is $9.00 per direct labor-hour. The production budget calls for producing 4,300 units in June and 4,800 units in July. Required: Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.) Required production in units Direct labor-hours per unit Total direct labor-hours needed Direct labor cost per hour Total direct labor cost June July A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours. Standard hours per unit of output Standard variable overhead rate 3.10 machine-hours $10.45 per machine-hour The following data pertain to operations for the last month: Actual hours Actual total variable manufacturing overhead cost 9,500 $95,770 machinehours Actual output 2,800 units What is the variable overhead efficiency variance for the month? The following materials standards have been established for a particular product: Standard quantity per unit of output Standard price 4.1 grams $12.00 per grams The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials purchased Actual materials used in production Actual output 3,000 grams $ 34,950 2,300 grams 470 units The direct materials purchases variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) Material cost Variance [ ] [ ] b What is the materials quantity variance for the month? (Input the amount a as positive value. Leave no cells . blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) Material quantity Variance [ ] [ ] The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output Standard variable overhead rate 5.4 hours $14.00 per hour The following data pertain to operations for the last month: Actual hours Actual total variable overhead cost Actual output 9,100 hours $125,090 1,670 units Required: a. What is the variable overhead rate variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) Variable overhead rate variance [ ] [ b What is the variable overhead efficiency variance for the month? (Input the amount as a positive value. Leave . no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) Variable overhead efficiency variance [[ Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales Net operating income Average operating assets $17,580,000 $738,360 $4,860,000 The division's margin is closest to: (Round your answer to 1 decimal place.) Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales Net operating income Average operating assets $17,910,000 $985,050 $4,850,000 The division's turnover is closest to: (Round your answer to 2 decimal places.) Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales Net operating income $17,810,000 $765,830 Average operating assets $5,100,000 The division's return on investment (ROI) is closest to: (Round your answer to 2 decimal places.) Fabio Corporation is considering eliminating a department that has a contribution margin of $38,000 and $76,000 in fixed costs. Of the fixed costs, $19,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be: The management of Fannin Corporation is considering dropping product H58S. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $920,000 $386,000 $368,000 $248,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $229,000 of the fixed manufacturing expenses and $190,000 of the fixed selling and administrative expenses are avoidable if product H58S is discontinued. What would be the effect on the company's overall net operating income if product H58S were dropped? Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.) Investment required in equipment Annual cash inflows Salvage value Life of the investment Required rate of return $590,000 $74,000 $0 16 years 7% The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment is closest to: In a statement of cash flows, issuing bonds payable affects the In a statement of cash flows, which of the following would be classified as an investing activity