Reference no: EM131291806
Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2017 Total Per Unit Sales (9,200 units) $414,000 $45 Variable costs 223,560 24.30 Contribution margin 190,440 $20.70 Fixed expenses 161,460 Net income $28,980 Management is considering the following course of action to increase net income: Reduce the selling price by 7%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 10%. Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to 4 decimal places e.g. 0.2522 and final answer to 0 decimal places, e.g. 2,510.) (a) Assuming no changes to selling price or costs. Break-even point units Break-even point $ Margin of safety $ (b1) Assuming changes to sales price and volume as described above. Break-even point units Break-even point $ Margin of safety $
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Amount of under or overapplied manufacturing overhead
: For Eckstein Company, the predetermined overhead rate is 137% of direct labor cost. During the month, Eckstein incurred $104,000 of factory labor costs, of which $85,200 is direct labor and $18,800 is indirect labor. Actual overhead incurred was $121..
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Annual manufacturing overhead costs
: Marquis Company estimates that annual manufacturing overhead costs will be $884,000. Estimated annual operating activity bases are direct labor cost $461,000, direct labor hours 46,000, and machine hours 101,000. Compute the predetermined overhead ra..
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Data relative to those activity cost pools and cost drivers
: Flynn Industries has three activity cost pools and two products. It expects to produce 3,340 units of Product BC113 and 1,920 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Flynn accumulated the follow..
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Materials conversion costs total equivalent units
: The Smelting Department of Kiner Company has the following production and cost data for November. Production: Beginning work in process 3,100 units that are 100% complete as to materials and 27% complete as to conversion costs; Compute the equivalent..
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Considering the course of action to increase net income
: Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2017 Total Per Unit Sales (9,200 units) $414,000 $45 Variable costs 223,560 24.30 Contribution margin..
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Control structure and procedures for financial reporting
: Section 404 of the Sarbanes-Oxley Act of 2002 (SOX) directs the SEC to adopt rules requiring that the annual reports of publicly-held companies contain information regarding the internal control structure and procedures for financial reporting.
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Compute variable cost per unit using the high-low method
: Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level. Units Produced Total Cost March 10,020 $15,535 April 9,020 14,591 May 10,500 16,315 June 8,780 14,131 July 9,460 15,071 Compute th..
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Determine the costs to be assigned to the units transferred
: Trek Company has the following production data for April: units transferred out 41,300, and ending work in process 6,190 units that are 100% complete for materials and 40% complete for conversion costs. If unit materials cost is $4 and unit conversio..
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Compute the predetermined overhead rate
: Washburn Company produces earbuds. During the year, manufacturing overhead costs were $234,000. Machine usage was 2,700 hours. The company assigns overhead based on machine hours. Job No. 551 used 90 machine hours. Compute the predetermined overhead ..
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