Laro Corporation produces and sells a single product with the following characteristics:

	Per unit	Percent of sales
Selling price	$ 350	100%
Variable expenses	175	50%
Contribution margin	$ 175	50%

The company is currently selling 7,000 units per month. Fixed expenses are $362,000 per month.

The marketing manager believes that a $9,000 increase in the monthly advertising budget would result in a 310 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

increase of $45,250

decrease of $9,000

decrease of $45,250

increase of $54,250

Madengrad Company manufactures a single product called a densimeter. This product is a density monitoring device attached to large industrial mixing machines used in flour, rubber, petroleum, and chemical manufacturing. A densimeter sells for $2,520 per unit. The following variable expenses are incurred to produce and sell each densimeter:

Direct labor	$ 504
Direct materials	$ 672
Variable factory overhead	$ 294
Variable marketing expenses	$ 210

Madengrad's annual fixed expenses are $7,080,000.

If Madengrad Company achieves a sales and production volume of 8,100 units, the annual net operating income (loss) is expected to be:

$ -276,000

$ 6,804,000

$ -7,144,200

$ -27,600

Parmentier Company uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January.

	Units	Percent Complete with Respect to Conversion
Beginning work in process inventory	5,200	89%
Transferred in from the prior department during January	58,800
Completed and transferred to the next department during January	56,700
Ending work in process industry	7,300	30%

The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $11,696 and a total of $107,468 in conversion costs were incurred in the department during January. What was the cost per equivalent unit for conversion costs for January in the Molding Department? (Round off to three decimal places.)

$2.024

$1.828

$1.671

$2.527

Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,800 units and of Product B is 1,050 units. There are three activity cost pools, with estimated costs and expected activity as follows:

Activities	Estimated Overhead Cost		Expected Activity
			Product A	Product B	Total
Activity 1	$46,775		1,300	1,200	2,500
Activity 2	$68,277		2,300	1,000	3,300
Activity 3	$82,502		720	700	1,420

The activity rate for Activity 3 is closest to:

$139.12

$68.28

$32.88

$58.10

The following partially completed T-accounts summarize the transactions of Belson Company for last year:

Raw Materials

Beg. Bal.	4,300		(2)	18,600
(1)	15,600

Work in Process

Beg. Bal.	8,300		(7)	59,300
(2)	12,300
(4)	15,300
(6)	28,300

Manufacturing Overhead

(2)	6,300		(6)	28,300
(3)	13,300
(4)	5,300
(5)	2,300

Cost of Goods Sold

Accounts Payable

			(1)	15,600
			(5)	2,300

Finished Goods

Beg. Bal.	15,300
(7)	59,300
End. Bal.	12,300

Wages and Salaries Payable

			Beg. Bal.	4,300
			(4)	28,900

Sales Salaries Expense

(4)	8,300

Accumulated Depreciation (Factory)

			Beg. Bal.	76,500
			(3)	13,300

At the end of the year, the company closes out the balance in the Manufacturing Overhead account to Cost of Goods Sold.

The indirect labor cost is:

$28,900

$5,300

$15,300

$12,300

Schmeider Corporation uses the following activity rates from its activity-based costing system to assign overhead costs to products.

Activities	Activity Rate
Setting up batches	$	72.02		per batch
Processing customer orders	$	29.08		per customer order
Assembling products	$	13.51		per assembly hour

Data concerning two products appear below:

	Product C00R	Product A61E
Number of batches	67	54
Number of customer orders	47	32
Number of assembly hours	420	163

Required:

How much overhead cost would be assigned to each of the two products using the company's activity-based costing system? (Do not round your intermediate calculations. Round your final answer to two decimal places.)

	Product C00R	Product A61E
Total overhead cost	$	$