Reference no: EM13333243
Question 1
At a break-even point of 400 units sold, variable expenses were $4,000, and fixed expenses were $2,000. What will the 401st unit sold contribute to profit?
Question 2
Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:
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Production Cost Data
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Direct materials
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$153,000
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Direct labor
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$110,500
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Variable manufacturing overhead
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$204,000
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Fixed manufacturing overhead
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$255,000
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Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost.
Under absorption costing, the carrying value on the balance sheet of the ending inventory for the year would be
Question 3
Gargymal Company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the past five months of operations.
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Machine Hours
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Electrical Cost
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August
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1,000
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$1,620
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September
|
900
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$1,510
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October
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1,500
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$1,870
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November
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2,000
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$1,950
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|
December
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1,300
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$1,730
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Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to which of the following?