ACC – Misc. Problems

ACC – Misc. Problems

Question


(a) For Kozy Company, actual sales are $1,173,000 and break-even sales are $797,640.

Compute the margin of safety in dollars and the margin of safety ratio.

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(b) Montana Company produces basketballs. It incurred the following costs during the year.

Direct materials $14,567
Direct labor $25,862
Fixed manufacturing overhead $9,712
Variable manufacturing overhead $31,984
Selling costs $20,828

What are the total product costs for the company under variable costing?

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(c) For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $326,100 budget; $337,600 actual.

Prepare a static budget report for the quarter.
MARIS COMPANY
Sales Budget Report
For the Quarter Ended March 31, 2012
Product Line Budget Actual Difference
Garden-Tools $
$
$

(d) Gundy Company expects to produce 1,222,920 units of Product XX in 2012. Monthly production is expected to range from 78,580 to 119,060 units. Budgeted variable manufacturing costs per unit are: direct materials $3, direct labor $8, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $3.

Prepare a flexible manufacturing budget for the relevant range value using 20,240 unit increments. (List variable costs before fixed costs.)