12.The contribution margin ratio of Donath Corporation\'s only product is 67%. T
ID: 2478415 • Letter: 1
Question
12.The contribution margin ratio of Donath Corporation's only product is 67%. The company's monthly fixed expense is $454,500 and the company's monthly target profit is $40,500.
Required: Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest dollar amount.)
Sale?
13.
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
The total gross margin for the month under absorption costing is:
$62,440
$15,610
$96,240
$107,040
14.
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Variable costs per unit:
Fixed costs:
What is the variable costing unit product cost for the month?
$170 per unit
$191 per unit
$147 per unit
$149 per unit
15.
Bartelt Inc., which produces a single product, has provided the following data for its most recent month of operations:
$190 per unit
$238 per unit
$201 per unit
$325 per unit
16.
Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $9.90 per direct labor-hour. The production budget calls for producing 3,800 units in June and 4,300 units in July.
Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.)
17.
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.
$3,252 U
$6,883 F
$9,911 U
$6,883 U
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Explanation / Answer
Answer
Answer 12
Contribution = Fixed cost + target profit
= $454,500 + $40,500
= $ 495000
Target sales = Contribution * 1/ Contribution margin ratio
= $ 495000 * 1/ 0.67
= $ 495000 * 100/67
= $ 495000 * 100/67
=$ 738805.97
Answer : sales required to attain the company's target profit is $ 738805.97.
Answer 13
Gross margin = (Selling price – Variable direct material cost – variable direct labor cost – variable manufacturing cost) * no of units sold – Fixed manufacturing cost related to units sold
= ($154 -$51 - $24 -$15 ) *2,230 – ( $92,160 *2,230/ 2,560 )
= 142720 – 80280
= 62440
Answer 14
Variable costing unit product cost = Direct material + Direct labour + Variable manufacturing overhead
= 60 + 62 + 25
= $ 147 per unit
Answer 15
Absorption costing unit product cost = Direct material + Direct labour + Variable manufacturing overhead + Fixed manufacturing overhead cost
= $104 + $86 + $11 + ( $199,800 / 5,400 )
= $104 + $86 + $11 + $37
= 238 per unit
Answer 16
Particulars
June
July
required production in units
3800
4300
direct labor hours per unit
0.05
0.05
total direct labor hours needed
190
215
direct labor cost per hour
9.9
9.9
total direct labor cost
1881
2128.5
Answer 17
Variable overhead efficiency variance = (Standard hours * Variable overhead absorption rate) – (Actual Hours * Variable overhead absorption rate)
= (1,500*5.30*11.66)–(8,800*11.66)
= $9,911 U
Particulars
June
July
required production in units
3800
4300
direct labor hours per unit
0.05
0.05
total direct labor hours needed
190
215
direct labor cost per hour
9.9
9.9
total direct labor cost
1881
2128.5
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.