QUESTION 465 Dearing Company is contemplating an expansion program based on the
ID: 2395820 • Letter: Q
Question
QUESTION 465 Dearing Company is contemplating an expansion program based on the following budget data Expense 63,0 Calculate the budgeted break-aven point in salee dollara S200,000 $210,000 $270,0o0 $330.0o0 QUESTION 46 ABC Company ABC Company reports the folowing infomation for the most recent period when 2.750 units were produced 00 per hour .95 per hou Refer to ABC Company. Calculate the total direct labor variance $200U $270 U $120 U QUESTION 47 For financial raporting purposas, how are foxed manufacturing coats rea? o As period costs. O As product oosts. Aa direct matenals conts None of the abowe QUESTION 48 A company currently breaks even at 1 .000 units its roed costs are S40.000 and its variable costs are S10 per unit. What is re product's selling price per unit? O $100 s 60 $ 35 3 25 QUESTION 49 What transfer pnong basis is considered Marka: prica-bared tranafar pricing o Varable cost-based transfer prieing O Fixed price-based trensfer pricing Fixed cotbaed tansfer pricing good estimation of differential oost plus opportunity cost?Explanation / Answer
Question - 45
The Answer is “$210,000”
Break Even Point in Sales Dollars = Fixed Cost / Contribution ratio
Contribution ratio = [ ($300,000 – 210,000) / 300,000] x 100 = 30%
Break Even Point in Sales Dollars = $63,000 / 0.30 = $210,000
Question - 46
The Answer is “$130 U”
Total Labor Variance = [AH x AR] – [SH x SR]
= [1,400 Hours x $7.95] – [1,375 Hours* x $8.00]
= $11,130 – 11,000
= 130 U [Unfavorable]
SH* = 2,750 Units x 0.50 Hours per unit = 1,375 Hours
Question - 47
The Answer is “As Product Costs”
For the financial reporting purposes, The fixed manufacturing costs are treated as the product costs
Question - 48
The Answer is “50”
Break Even point in units = Fixed Costs / Contribution per unit
1,000 Units = $40,000 / Contribution per unit
Contribution per unit = $40,000 /1,000
Contribution per unit = $40 per unit
Selling price per unit = Variable cost per unit + Contribution per unit
= $10 + $40
= $50
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