subject: Cost Accounting

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1. Bellucci Corporation has provided the following information:

Cost per Unit Cost per Period Direct materials $ 6.95 Direct labor $ 4.00 Variable manufacturing overhead $ 1.45 Fixed manufacturing overhead $ 109,800 Sales commissions $ 1.05 Variable administrative expense $ 0.75 Fixed selling and administrative expense $ 40,050 The incremental manufacturing cost that the company will incur if it increases production from 9000 to 9001 units is closest to (assume that the increase is within the relevant range): $27.60 $30.85 $24.60 $12.40

2.

Vegas Company has the following unit costs:

Variable manufacturing overhead $ 25 Direct materials 20 Direct labor 19 Fixed manufacturing overhead 12 Variable marketing and administrative 7 Vegas produced and sold 10,000 units. If the product sells for $100, what is the operating profit under full absorption costing? $360,000 $170,000 $290,000 $240,000

3.

Erkkila Inc. reports that at an activity level of 6500 machine-hours in a month, its total variable inspection cost is $423,830 and its total fixed inspection cost is $158,372.

What would be the average fixed inspection cost per unit at an activity level of 6800 machine-hours in a month? Assume that this level of activity is within the relevant range. $40.84 $24.36 $89.57 $23.29

4.

During April, the Meade Enterprises had the following operating results:

Sales revenue $ 1,500,000 Gross margin $ 600,000 Ending work-in-process inventory $ 50,000 Beginning work-in-process inventory $ 80,000 Ending finished goods inventory $ 100,000 Beginning finished goods inventory $ 125,000 Marketing costs $ 250,000 Administrative costs $ 150,000 What is the cost of goods manufactured for April? $925,000 $875,000 $905,000 $900,000

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