Iadanza Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $195.70 per unit. The best estimate of the total contribution margin when 6,300 units are sold is: A. $100,170 B. $638,190 C. $177,030 D. $752,220 In describing the cost formula equation Y = a + bX, which of the following statements is correct? A. As "X" increases "Y" decreases. B. In the high-low method, "b" equals change in activity divided by change in costs. C. "X" is the dependent variable. D. "a" is the fixed component. Loren Company's single product has a selling price of $15 per unit. Last year the company reported total variable expenses of $180,000, fixed expenses of $90,000, and a net operating income of $30,000. A study by the sales manager discloses that a 15% increase in the selling price would reduce unit sales by 10%. If her proposal is adopted, net operating income would: A. increase by $37,500 B. increase by $7,500 C. increase by $45,000 D. increase by $28,500 Lund Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any underapplied or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following transactions were recorded by the company: The Cost of Goods Manufactured for March was: A. $63,000 B. $66,500 C. $59,500 D. $61,500 Lund Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any underapplied or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following transactions were recorded by the company: The amount of direct materials cost in the March 31 Work in Process inventory account was: A. $5,250 B. $3,500 C. $9,000 D. $8,750 Lund Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any underapplied or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following transactions were recorded by the company: The balance on March 1 in the Raw Materials inventory account was: A. $8,500 B. $9,500 C. $6,500 D. $7,500 Lund Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any underapplied or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following transactions were recorded by the company: The entry to dispose of the underapplied or overapplied manufacturing overhead cost for the month would include: A. a debit of $5,000 to the Cost of Goods Sold. B. a debit of $5,000 to the Manufacturing Overhead account. C. a credit of $2,000 to the Manufacturing Overhead account. D. a credit of $2,000 to Cost of Goods Sold. Lyster Inc. has provided the following data for the month of August. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was underapplied by $1,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. The work in process inventory at the end of August after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to: A. $5,570 B. $5,575 C. $5,650 D. $5,645 Martinez Aerospace Company uses a job-order costing system. The direct materials for Job #045391 were purchased in July and put into production in August. The job was not completed by the end of August. At the end of August, in what account would the direct material cost assigned to Job #045391 be located? A. Finished goods inventory B. Raw materials inventory C. Cost of goods manufactured D. Work in process inventory Mowrer Corporation produces and sells a single product. Data concerning that product appear below: Fixed expenses are $567,000 per month. The company is currently selling 9,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $84,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 600 units. What should be the overall effect on the company's monthly net operating income of this change? A. Increase of $21,600 B. Increase of $669,600 C. Increase of $77,400 D. Decrease of $146,400