Reference no: EM131580240

QUESTION 1 - Bateman Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$117
Units in beginning inventory	0
Units produced	4,700
Units sold	4,400
Units in ending inventory	300
Variable costs per unit:
Direct materials	$36
Direct labor	$38
Variable manufacturing overhead	$4
Variable selling and administrative	$11
Fixed costs:
Fixed manufacturing overhead	$89,300
Fixed selling and administrative	$26,400

Required: What is the unit product cost for the month under variable costing?

QUESTION 2 - At an activity level of 8,800 units, Pember Corporation's total variable cost is $146,520 and its total fixed cost is $219,296.

Required: For the activity level of 8,900 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range.

QUESTION 3 - Marano Corporation produces and sells a single product. In October, the company sold 6,200 units. Its total sales were $223,200, its total variable expenses were $105,400, and its total fixed expenses were $100,400.

Required: a. Construct the company's contribution format income statement for October.

b. Redo the company's contribution format income statement assuming that the company sells 6,400 units.

QUESTION 4 - Mat Corporation's actual manufacturing overhead cost for the month ended March 31 was $78,000. The company's predetermined overhead rate was 50% of direct labor cost. Other information pertaining to Mat Corporation's inventories and production for the month of March is as follows:

Beginning inventories, March 1:
Work in process	$40,000
Finished goods	$102,000
Direct materials cost	$104,000
Direct labor cost	$160,000
Ending inventories, March 31:
Work in process	$36,000
Finished goods	$105,000

Required:

a. Determine the underapplied or overapplied overhead for the month.

b. Determine the Cost of Goods Manufactured for the month. 

QUESTION 5 - Sproull Inc., which produces a single product, has provided the following data for its most recent month of operation:

Number of units produced	2,000
Variable costs per unit:
Direct materials	$21
Direct labor	$75
Variable manufacturing overhead	$7
Variable selling and administrative expenses	$6
Fixed costs:
Fixed manufacturing overhead	$116,000
Fixed selling and administrative expenses	$40,000

The company had no beginning or ending inventories.

Required: a. Compute the unit product cost under absorption costing.

b. Compute the unit product cost under variable costing.

QUESTION 6 - Data for March concerning Mauger Corporation's two major business segments-Fibers and Feedstocks-appear below:

Sales revenues, Fibers	$560,000
Sales revenues, Feedstocks	$810,000
Variable expenses, Fibers	$235,000
Variable expenses, Feedstocks	$348,000
Traceable fixed expenses, Fibers	$90,000
Traceable fixed expenses, Feedstocks	$113,000

Common fixed expenses totaled $461,000 and were allocated as follows: $249,000 to the Fibers business segment and $212,000 to the Feedstocks business segment.

Required: Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.