High-Low Method The manufacturing costs of Rosenthal Industries for the first three months of the year follow: Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Break-Even Point Hitton Inc. selts a product for $112 per unit. The variable cost is $66 per unit, while fixed costs are $814,660. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $121 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $121 per unit units Trallblazer Company sells a product for $120 per unit. The variable cost is $65 per unit, and fixed costs are $220,000. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $52,800 a. Break-even point in sales units units b. Break-even point in sales units required for the company to achieve a target profit of $52,800 units static Budget versus Flexble Budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: The Machining Department supervisor has been very pleased wath this performance because actual expend tures for May-3uly have been significantly less than the monthly static budget of 642,000 . However, the plant manager believes that the budget should not remain fixed for every month but should "Alex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: a. Prepare a flexible budget for the actual units produced for May, June, and July in the Machining Department. Assume depreciabion is a foxed cost. If required, use per unit? amounts carned out to two decimal places. b. Compare the flexible budget with the actual expendifures for the first three monthis b. Compare the flexible budget with the actual expenditures for the first three months. The Machining Department has performed better than originally thought. The department is spending more than would be expected. Befingham Company produces a product that requires 8 standard direct labor hours per unit at a standard hourly rate of $12. 00 per hour. If 4,000 inits used 32,600 hours at an hourly rate of $11.40 per houc, what is the direct labor (a) rpte variance, (b) bme varance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorabie yariance as a potitive number. Average Rate of Return The following data are accumulated by Watershed Inc, in evaluating two competing capital investment proposals: Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A Project 2
