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Fairfield Corporation uses an actual cost system a...




Fairfield Corporation uses an actual cost system and produces a single product. Information about the product for the past year is as follows: Product X Production (units) 100,000 Sales (units) 80,000 Selling price $20.00 Machine hours 50,000 Manufacturing costs: Direct materials $ 80,000 Direct labor 240,000 Variable overhead 40,000 Fixed overhead 200,000 Nonmanufacturing costs: Variable selling $48,000 Fixed selling 20,000 There were no beginning inventories. (Round amounts to two decimal places.) Fairfield's unit product cost for Product X using variable costing would be? Answer $4.00 $3.60 $3.20 $2.80 Company sells a product for $10. Budgeted sales for the first quarter of the current year are as follows: Budgeted Sales January $600,000 February 800,000 March 900,000 The company wants to maintain an inventory of finished units equal to 30 percent of the following month's sales, and 10,000 units are on hand at the beginning of the year. Each unit requires two pounds of raw material costing $1 per pound. The company maintains a raw materials inventory equal to 20 percent of the following month's production needs. Budgeted production in units for February would be? Answer 131,000 107,000 83,000 80,000 The following information was reported on two projects of Dartmouth, Inc.: Prior Year Current Year Sales $30,000,000 $30,000,000 Operating income 2,160,000 2,100,000 Average operating assets 12,000,000 12,000,000 Dartmouth, Inc.'s margin for the current year is? Answer 7.0% 7.2% 4.0% 2.5% Company has developed the following standards for one of its products: Direct materials 12 pounds x $14 per pound Direct labor 3 hours x $18 per hour Variable overhead 3 hours x $8 per hour The following activities occurred during the month of October: Materials purchased 10,000 pounds at $13.60 per pound Materials used 9,000 pounds Units produced 800 units Direct labor 2,500 hours at $19.00 per hour Actual variable overhead $22,000 The company records materials price variances at the time of purchase. Rax Company's variable standard cost per unit would be? Answer $78 $192 $246 $222 sales for Sommers, Inc., for next year and beginning and ending inventory data are as follows: Sales 50,000 units Beginning inventory 4,000 units Desired ending inventory 8,000 units The selling price is $40 per unit. Each unit requires four pounds of material which costs $6 per pound. The beginning inventory of raw materials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of the year. How many pounds of material would Sommers need to purchase? Answer 207,000 216,000 225,000 201,000 Sales $540,000 Variable costs $378,000 Fixed costs $120,000 Expected production and sales in units 40,000 units The break-even point in sales dollars is? Answer $498,000 $400,000 $171,429 $112,500 cost functions were developed for manufacturing overhead costs: Manufacturing Overhead Cost Cost Function Electricity $400 + $140 per direct labor hour Maintenance $800 + $40 per direct labor hour Supervisors' salaries $16,000 per month Indirect materials $50 per direct labor hour If July production is expected to be 200 units that require 300 direct labor hours, estimated manufacturing overhead costs would be? Answer $17,430 $55,200 $63,200 $86,200 Chess Company provided the following information from its 2006 income statement. Sales revenue $800,000 Cost of goods sold 400,000 Selling expenses 100,000 Administrative expenses 50,000 Other operating expenses 50,000 Interest expense 20,000 Tax expense 63,000 In addition, the company reported the following asset balances for fiscal years ended December 31, 2005 and 2006: Assets 2005 2006 Cash $50,000 $55,000 Accounts receivable 170,000 185,000 Inventory 100,000 120,000 Investment in Checkers Company 80,000 85,000 Undeveloped land 170,000 170,000 Buildings, net of depreciation 400,000 450,000 Calculate Chess Company?s operating income. Answer $117,000 $180,000 $200,000 $400,000 Company began the year with no inventories of work in process or finished goods. Budgeted and actual costs for the year were as follows: Variable costs: Direct materials $15 per unit Direct labor $10 per unit Manufacturing overhead $7 per unit Selling expenses $5 per unit Fixed costs: Manufacturing overhead $180,000 per month Selling and administrative $50,000 per month During the first three months of the year, production and sales in units were as follows: Production Sales January 20,000 20,000 February 20,000 18,000 March 20,000 22,000 Total 60,000 60,000 Lee Company sells its product for $100 per unit. There were no work-in-process inventories at the end of any month and costs have remained stable all year long. Lee's unit cost of production for March using absorption costing would be? Answer $46 $41 $37 $32,Hello: Are you able to see the attachment,Hello: Are you able to see the attachment


Paper#6205 | Written in 18-Jul-2015

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