Question 1 (2 points) Martha Manufacturing produces a single product that sells for $80. Variable unit cost is $32 and fixed cost/month is $72,000. Projected sales for April are 2,000 units.

1. What are the breakeven units for April?

2. What is the net income for April (ignoring taxes)?

3. Management believes that a $16,800 increase in the monthly advertising budget will result in a considerable increase in sales. How many units must sales increase by in order to justify this additional expenditure?

Question 2 (1 point)

During May, sales for a certain product were $360,000 with total fixed costs of $162,000 and variable costs of 40% of sales. Determine the dollar sales needed to achieve a target income of $27,000 in June. (Ignore taxes)

Question 3 (1 point)

Powell Company produces and sells one product with a variable cost of $25/unit. Powell's fixed costs are $165,000. Determine the additional rent cost the company can afford to incur if they have determined that they can sell 15,000 units at a price of $45 and desire to earn a profit of $100,000.

Question 4 (2 points)

Semantics manufactures pocket-size cellular phones. It expects to sell 40,000 phones in November. The company had enough materials inventory on October 31 to produce 48,000 phones and wants to maintain a materials inventory on November 30 sufficient to produce 40,000 phones. Semantics has 4,000 phones on October 31 and has a desired inventory of 5,000 phones on November 30. The phones are expected to sell for $600 each. Direct material cost is $200 per phone, direct labor cost is $100 per phone, and factory overhead is $40 per phone.

1. Determine Semantics' budgeted production for November 2. Determine Semantics' budgeted cost of goods sold for November 3. Determine Semantics' budgeted cost for DM purchases, DL, and FOH for November

Question 5 (1 point)

Value Products has prepared the following budgets for the second half of the current year: Revenue budget $360,000 Materials purchases budget 130,000 Labor budget 45,000 F/OH budget 60,000 G&A expenses budget 62,000 Selling expenses budget 13,000 FG beginning inventory budget 55,000 FG ending inventory budget 50,000 WIP beginning inventory budget 42,000 WIP ending inventory budget 33,000 Determine Value Products' budgeted Net Income for this period (Ignore taxes)

Question 6 (1/2 point)

In what order should the following budgets be prepared B) budgeted balance sheet S) sales budget P) production budget L) direct labor budget I) budgeted income statement

a. P,L,I,S,B

b.S,P,L,I,B

c. S,P,I,L,B

d. S,L,P,I,B

Question 7 (1 point)

Wood Fine, a maker of high-quality furniture, budgeted to purchase and use 4,000 pounds of wood @$1.50 per pound during March. It budgeted for the production of 800 tables during the same period. Actual purchase and use during March was 4,500 pounds of wood @$1.60 per pound. During the month, 820 tables were produced.

1. Determine the DM quantity variance for March 2. Determine the DM price variance for March

Question 8 (1 point)

Information on Hanley's direct labor costs for April is as follows: Actual direct labor rate - $7.50/hour Budgeted hours - 11,000 hours Actual hours - 10,000 hours Direct labor rate variance - $5,500 (F) 1. Determine Hanley's budgeted direct labor rate per hour for March.

Question 9 (1/2 point)

An unfavorable direct labor efficiency variable would probably occur when

a. workers are overpaid

b. workers are inexperienced

c. workers are experienced

d. workers are given superior quality material to work with