Which of the following is an example of a cost that is variable with respeet to

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Which of the following is an example of a cost that is variable with respeet to the number of units produced and sold? Insurance on the headquarters building. Power to run production equipment. Supervisory salaries, Amortization of factory facilities North Company sells a single product. The product has a selling price of $ 30 per unit and variable expenses are 70% of sales. If the company's fixed expenses total $ 60,000 per year, then what will be its break-even? $60,000 $85,714. $42,000. $200,000. Parcel Company's sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data: What would be the budgeted total cash receipts in April? $27,230. $36,230. $38,900. $47,900. Pardee Company plans to sell 12,000 units during the month of August. If the company has 2.500 units on hand at the start of the month, and plans to have 2,000 units on hand at the end of the month, how many units must be produced during the month? 11,500 units. 12,000 units. 12.500 units. 14,000 units. A favorable materials price variance coupled with an unfavourable materials quantity variance would MOST likely result from which of the following? Problems with processing machines. Purchase of low quality materials. Problems with labour efficiency. Changes in the product mix. Last month 75,000 kilograms of direct materials were purchased, and 71,000 kilograms were used. If the actual purchase prior per kilogram was S0.50 more than the standard purchase price per kilogram, what was the materials price variance? $2.000 favourable. $35,500 unfavourable. $37,500 favourable. $37,500 unfavourable.

Explanation / Answer

Ans 22 B. Power to run production equipment It is variable as if more units are produced the equipment will run for longer time therebyincreaing the power cost All other options are fixed in nature Ans 23 Break even point Fixed cost/Contribution margin ratio 60000/.3 200000 Ans D Contribution margin ratio 100-70/100 30% Ans 24 April sales 30% in cash (30000*30%) 9000 April 60%*70%*30000 12600 March 50000*25%*70% 8750 Feb 70000*70%*12% 5880 Total April Collection 36230 Ans b Ans 25 Sales in units 12000 Add: Desired Inventory 2000 Total need 14000 Less: Opening balance 2500 Units to be produced 11500 units ans A Ans 26 B Purchase of lower quality material It is purchased at lower cost so favorable variance but due to lower quality more of defective units etc prolem arises which gives unfavorable variance Ans 27 material price variance 75000*.5 37500 Unfavorable Ans d Material price variance calculated at the time of purchase Material price variance is calculated on basis of usage 71000*.5 35500 Unfavorable But generally it is calculated at the time of purchase so ans should be D 37500U

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