Question 1

One of Lara Dole Company's activity cost pools is machine setups, with estimated overhead of $300,000. Dole produces flares (400 setups) and health packs (600 setups). How much of the machine setup cost pool should be assigned to flares?

Question 2

At the high level of activity in November, 7,000 machine hours were run and power costs were $12,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $6,000. Using the high-low method, the estimated fixed cost element of power costs is

Question 3

A company sells a product which has a unit sales price of $5, unit variable cost of $3, and total fixed costs of $100,000. The number of units the company must sell to break even is

Question 4

Barkley Company had actual sales of $500,000 and a break-even point of $400,000. Its margin of safety ratio was