Hity Corporation produces and sells two products. In the most recent month, Product #77 had sales of $45,000 and variable expenses of $15.750. Product #86 had sales of $49,000 and variable expenses of S22,790. And the fixed expenses of the entire company were $46,170. The break-even point for the entire company is closest to: (a) $78,254 $84,710 (c) $98,124 None of the above. (b) 5 The manufacturing overhead budget at EU Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 1,600 direct labor-hours will be required in December. The variable overhead rate is $4.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $25.120 per month, which includes depreciation of $5,440. All other fixed manufacturing overhead costs represent current cash flows. The December cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: (a) $17,040 (b) $26,720 (c) $31,050 (d) None of the above. 6 Marple Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below: January February March Budgeted production (in units) 60,000 ? 100,000 Budgeted raw materials purchases (in pounds) 129,000 165,000 188,000 Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. The company is expected to have 36,000 pounds of raw materials on hand on January 1. Budgeted production for February should be: (a) 51,000 units (b) 62,500 units (c) 75,000 units None of the above. 7 Overhead allocation based solely on a measure of volume such as direct labor-hours (a) is a key aspect of the activity-based costing model. (b) must be used for external financial reporting. (c) will systematically over-cost low-volume products and under-cost high-volume products. will systematically over-cost high-volume products and under-cost low-volume products