Gitli Company sells its product for $60 and has variable cost of $35 per unit. The total fixed costs are $26,000. What will be the effect on the breakeven point in units if variable cost increases by $5 due to an increase in the cost of direct materials? (Round your answer up to the nearest whole unit.) O a. It will decrease by 176 units. O b. It will decrease by 260 units. . It will increase by 260 units, Od it will increase by 176 units A radial tire manufacturer produces products in two departments-Divisions A and B. The company uses separate predetermined overhead allocation rates for each department to allocate its overhead. Divisions A and B have estimated manufacturing overhead costs of $160,000 and $360,000, respectively. Division A uses machine hours as the allocation base, and Division Buses direct labor hours as the allocation base. The total estimated machine hours were 31,000, and direct labor hours were 22,000 for the year. Calculate the departmental predetermined overhead allocation rates. (Round your answer to the nearest cent.) O a. Division A-511.61, Division B--$7.27 O b. Division A-$16.36, Division B-$5.16 . Division A $7.27, Division B-$11.61 Od Division A $5.16, Division B- $16.36 Louis, a manager of Doggone Gorgeous, Inc., was reviewing the water bills of a dog daycare and spa. He determined that its highest and lowest bills of $3,800 and $2,000 were incurred in the months of May and November, respectively. If 600 dogs were washed in May and 200 dogs were washed in November, what was the fixed cost associated with the company's water bill? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) O a $1,800 O b. $3,800 Oc $1,100 d. $2,000 When calculating the cost per equivalent unit in process costing, what is the difference between the weighted average and FIFO methods? O a With FIFO, prior period costs are not combined with current period costs. Ob With FIFO, prior period costs are combined with current period costs, Oc With weighted average, prior period costs are not combined with current period costs. O d. There is no difference between the two methods. Thornton, Inc. has budgeted sales for the months of September and October at $300,000 and $270,000, respectively. Monthly sales are 20% credit and 80% cash. Of the credit sales, 50% are collected in the month of sale, and 50% are collected in the following month. Calculate cash collections for the month of October O a. $270,000 b. $273,000 . $297,000 d. $243,000 Bag Ladies, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,500. Additional estimated information is given below Totes Satchels Direct materials cost per unit $40 Direct labor cost per unit $53 $61 Number of units $33 530 360 Calculate the amount of overhead to be allocated to Totes (Round any percentages to two decimal places and your final answer to the nearest dollar) $11,189 O b. $14,312 $327 O d. $481
