Shiraki Corporation produces and sells a single product. Data concerning that product appear below:

Selling price per unit	$640
Variable expense per unit	$256
Fixed expense per month	$720,000

The break-even in monthly dollar sales is closest to (Round your intermediate calculations to two decimal places.):

$1,320,000

$1,200,000

$720,000

$1,800,000

The following is Allison Corporation's contribution format income statement for last month:

Sales	$1,080,000
Variable expenses	440,000
Contribution margin	640,000
Fixed expenses	470,000
Net operating income	170,000

The company has no beginning or ending inventories. The company produced and sold 10,000 units last month.

If sales increase by 340 units, by how much should net operating income increase?

$36,720

$21,760

$10,880

$5,780

The following cost formula relates to last year's operations at Lemine Manufacturing Corporation:

Y = $105,000 + $78.00X

In the formula above, 75% of the fixed cost and 90% of the variable cost are manufacturing costs. Y is the total cost and X is the number of units produced and sold. If Lemine produces and sells only 9,000 units, what is the unit product cost under each of the following methods? (Do not round your intermediate calculations.)

	Variable Costing	Absorption Costing
A)	$70.20	$78.95
B)	$70.20	$81.87
C)	$78.00	$89.67
D)	$78.95	$70.20

Option C

Option D

Option A

Option B

Carr Company produces a single product. During the past year, Carr manufactured 32,000 units and sold 23,500 units. Production costs for the year were as follows:

Fixed manufacturing overhead	$ 320,000
Variable manufacturing overhead	$ 320,000
Direct labor	$ 198,400
Direct materials	$ 275,200

Sales totaled $1,292,500, variable selling expenses totaled $291,200, and fixed selling and administrative expenses totaled $177,000. There were no units in beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at (Do not round your intermediate calculations.):

$351,068

$359,821

$427,816

$295,800

Kindschuh Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.17 direct labor-hours. The direct labor rate is $6.90 per direct labor-hour. The production budget calls for producing 3,900 units in June and 4,700 units in July.

Required:

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your intermediate calculations and final answer to two decimal places.)

Kindschuh Corporation Direct Labor Budget
	June	July
Required production in units
Direct labor-hours per unit
Total direct labor hours needed
Direct labor cost per hour	$	$
Total direct labor cost	$	$