Question
urgent thx` 4. Assume a companys estimated unit sales and required production for January are 25,950 units and 25,145 units, respectively. The company always maintains
urgent thx`
4.
Assume a companys estimated unit sales and required production for January are 25,950 units and 25,145 units, respectively. The company always maintains ending finished goods inventory equal to 10% of next months unit sales. What is the estimated unit sales in February?
Multiple Choice
-
17,900 units
-
18,381 units
-
16,381 units
-
15,900 units
Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 26%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true?
Multiple Choice
-
The break-even point is 8,958 units
-
The total variable expenses = $52,000
-
The total contribution margin = $148,000
-
The total fixed expenses = $42,000
5.
Frolic Corporation has budgeted sales and production over the next quarter as follows:
July | August | September | |||||
---|---|---|---|---|---|---|---|
Sales in units | 45,000 | 57,000 | ? | ||||
Production in units | 45,700 | 57,300 | 61,650 |
The company has 5,000 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 76,500 units. Budgeted sales for September would be (in units):
Multiple Choice
-
69,000
-
67,350
-
60,000
-
69,300
6.
Assume the following information for one of a companys variable expenses:
- The amount of the expense in the planning budget is $9,000.
- The cost formula is $9.00 per hour.
- The actual level of activity is 900 hours.
- The spending variance is $260 unfavorable.
The actual amount of the expense must be:
Multiple Choice
-
$8,360.
-
$8,100.
-
$8,560.
-
$8,860.
7.
Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below:
January | February | March | |
---|---|---|---|
Budgeted production (in units) | 70,400 | ? | 82,000 |
Budgeted raw materials purchases (in pounds) | 195,009 | 157,600 | 160,800 |
Three pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 21% of the following month's production needs. The company is expected to have 44,352 pounds of raw materials on hand on January 1. Budgeted production for February should be:
Multiple Choice
-
82,600 units
-
105,740 units
-
82,000 units
-
44,700 units
8.
Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations:
Per Unit | Per Year | |
---|---|---|
Selling price | $ 200 | |
Direct materials | $ 70 | |
Direct labor | $ 50 | |
Variable manufacturing overhead | $ 8 | |
Sales commission | $ 8 | |
Fixed selling and administrative expense | $ 110,000 | |
Fixed manufacturing overhead | $ 300,000 |
Using absorption costing, what is the net operating income for the second year of operations?
Multiple Choice
-
$170,000
-
$190,000
-
$220,000
-
$200,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started