Tentacle Television Antenna Company provided the following manufacturing costs for the month of June. $\begin{array}{|l|r|} \hline\text { Direct labor cost } & \$ 132,000 \\ \hline \text { Direct materials cost } & 84,000 \\ \hline \text { Equipment depreciation } &\\ \text { (straight-line) } & 24,000 \\ \hline \text { Factory insurance } & 10,000 \\ \hline \text { Factory manager's salary } &10,200 \\ \hline \text { Janitor's salary } & 4000\\ \hline \text { Packaging costs } & 18,600\\ \hline\text { Property taxes }&16,000\\ \hline \end{array}$ From the above information,calculate Tentacle's total fixed costs.

A) $298,800 B) $40,200 C) $60,200 D) $64,200 A) $298,800 B) $40,200 C) $60,200 D) $64,200

Yancey,Inc.reports the following information: \[\begin{array} { | l | r | c | } \hline \text { Units produced } & 520 & \text { units } \\ \hline \text { Units sold } & 520 & \text { units } \\ \hline \text { Sales price } & \$ 180 & \text { per unit } \\ \hline \text { Direct materials } & \$ 40 & \text { per unit } \\ \hline \text { Direct labor } & \$ 15 & \text { per unit } \\ \hline \text { Variable manufacturing overhead } & \$ 20 & \text { per unit } \\ \hline \text { Fixed manufacturing overhead } & \$ 13,000 & \text { per year } \\ \hline \text { Variable selling and administrative costs } & \$ 10 & \text { per unit } \\ \hline \text { Fixed selling and administrative costs } & \$ 15,000 & \text { per year } \\ \hline \end{array}\] What is the amount of unit product cost that will be considered for external reporting purposes? (Round any intermediate calculations and your final answer to the nearest cent.)

A) $40.00 B) $80.00 C) $125.00 D) $100.00 A) $40.00 B) $80.00 C) $125.00 D) $100.00

Amarantha Corp.has provided the following data for the current year. \[\begin{array} { | l | r | } \hline \text { Units produced } & 2,500 \text { units } \\ \hline \text { Sales price } & \$ 200 \text { per unit } \\ \hline \text { Direct materials } & \$ 75 \text { per unit } \\ \hline \text { Direct labor } & \$ 65 \text { per unit } \\ \hline \text { Variable manufacturing overhead } & \$ 25 \text { per unit } \\ \hline \text { Fixed manufacturing overhead } & \$ 225,000 \text { per year } \\ \hline \text { Variable selling and administrative costs } & \$ 30 \text { per unit } \\ \hline \text { Fixed selling and administrative costs } & \$ 150,000 \text { per year } \\ \hline \end{array}\] Calculate the unit product cost using absorption costing and variable costing.

\[\begin{array} { l l l } & \text { Var

McIntosh,Inc.reports the following information: \[\begin{array} { | l | r | c | } \hline \text { Beginning Finished Goods Inventory } & 60 & \text { units } \\ \hline \text { Units produced } & 550 & \text { units } \\ \hline \text { Units sold } & 610 & \text { units } \\ \hline \text { Sales price } & \$ 130 & \text { per unit } \\ \hline \text { Direct materials } & \$ 17 & \text { per unit } \\ \hline \text { Direct labor } & \$ 10 & \text { per unit } \\ \hline \text { Variable manufacturing overhead } & \$ 17 & \text { per unit } \\ \hline \text { Fixed manufacturing overhead } & \$ 14,000 & \text { per year } \\ \hline \text { Variable selling and administrative costs } & \$ 6 & \text { per unit } \\ \hline \text { Fixed selling and administrative costs } & \$ 12,500 & \text { per year } \\ \hline \end{array}\] What is the unit product cost using variable costing? (Round your answer to the nearest cent.)

A) $69.45 B) $44.00 C) $52.45 D) $98.18 A) $69.45 B) $44.00 C) $52.45 D) $98.18

Answer the following variable costing questions: \[\begin{array} { | l | l | } \hline \text { Question } & \text { Variable Costing } \\ \hline \text { Which costs are included as } & \\ \text { product costs? } & \\ \hline \text { Which costs are included as } & \\ \text { period costs? } & \\ \hline \end{array}\]

\[\begin{array} { | l | l | } \hline \t

Emeka Company has provided the following information: \[\begin{array} { | l | r | } \hline \text { Sales price per unit } & \$ 52 \\ \hline \text { Variable cost per unit } & 16 \\ \hline \text { Fixed costs per month } & \$ 14,000 \\ \hline \end{array}\] Calculate the contribution margin per unit.

A) $36.00 B) $52.00 C) $68.00 D) $16.00 A) $36.00 B) $52.00 C) $68.00 D) $16.00

Exam 21: Cost-Volume-Profit Analysis

Tentacle Television Antenna Company provided the following manufacturing costs for the month of June. Direct labor cost \ 132,000 Direct materials cost 84,000 Equipment depreciation (straight-line) 24,000 Factory insurance 10,000 Factory manager's salary 10,200 Janitor's salary 4000 Packaging costs 18,600 Property taxes 16,000 From the above information,calculate Tentacle's total fixed costs.

(Multiple Choice)

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Question 61

Complete the statement,using the following terms: increase,decrease,or have no effect on. Increases in total fixed costs contribution margin per unit and the breakeven point.

(Essay)

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Question 62

Yancey,Inc.reports the following information: Units produced 520 units Units sold 520 units Sales price \ 180 per unit Direct materials \ 40 per unit Direct labor \ 15 per unit Variable manufacturing overhead \ 20 per unit Fixed manufacturing overhead \ 13,000 per year Variable selling and administrative costs \ 10 per unit Fixed selling and administrative costs \ 15,000 per year What is the amount of unit product cost that will be considered for external reporting purposes? (Round any intermediate calculations and your final answer to the nearest cent.)

(Multiple Choice)

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Question 63

CVP analysis assumes that the sales price per unit does not change as volume changes.

(True/False)

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Question 64

Amarantha Corp.has provided the following data for the current year. Units produced 2,500 units Sales price \ 200 per unit Direct materials \ 75 per unit Direct labor \ 65 per unit Variable manufacturing overhead \ 25 per unit Fixed manufacturing overhead \ 225,000 per year Variable selling and administrative costs \ 30 per unit Fixed selling and administrative costs \ 150,000 per year Calculate the unit product cost using absorption costing and variable costing.

(Essay)

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Question 65

McIntosh,Inc.reports the following information: Beginning Finished Goods Inventory 60 units Units produced 550 units Units sold 610 units Sales price \ 130 per unit Direct materials \ 17 per unit Direct labor \ 10 per unit Variable manufacturing overhead \ 17 per unit Fixed manufacturing overhead \ 14,000 per year Variable selling and administrative costs \ 6 per unit Fixed selling and administrative costs \ 12,500 per year What is the unit product cost using variable costing? (Round your answer to the nearest cent.)

(Multiple Choice)

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Question 66

Dream Threads Company sells hand-sewn shirts for $40 per shirt.It incurs monthly fixed costs of $7000.The contribution margin ratio is calculated to be 50%.What is the breakeven point in units? (Round your answer up to the nearest whole unit.)

(Multiple Choice)

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Question 67

Contribution margin ratio is the ratio of contribution margin to net income.

(True/False)

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Question 68

Answer the following variable costing questions: Question Variable Costing Which costs are included as product costs? Which costs are included as period costs?

(Essay)

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Question 69

The sales required to achieve a target profit can be determined by using the contribution margin,contribution margin ratio,or break even approaches.

(True/False)

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Question 70

Which of the following will lower the breakeven point?

(Multiple Choice)

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Question 71

Gross profit is calculated by deducting ________ from sales revenue.

(Multiple Choice)

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Question 72

What is operating leverage? The degree of operating leverage is 2.75.What does this mean?

(Essay)

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Question 73

For every unit that is produced but not sold,absorption costing "hides" some of the fixed manufacturing overhead in ending Finished Goods Inventory.

(True/False)

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Question 74

Jeong Company incurs both fixed and variable production costs.Assuming that production is within the relevant range,if volume goes up by 20%,then the total costs would ________.

(Multiple Choice)

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Question 75

If the sales price of Product X is $24.00 per unit and unit fixed cost is $7.50,its contribution margin per unit is $16.50.

(True/False)

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Question 76

In absorption costing,the manufacturing costs expensed are greater than the amount expensed in variable costing when units produced are less than sold because the units in beginning inventory under absorption costing were assigned a greater cost in the previous accounting period.

(True/False)

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Question 77

Which of the following statements is TRUE if the variable cost per unit increases while the sales price per unit and total fixed costs remain constant?

(Multiple Choice)

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Question 78

Yarn Basket,Ltd.,sells hand-knit scarves.Each scarf sells for $40.The company pays $150 to rent a vending space for one day.The variable costs are $11 per scarf.What total revenue amount does the company need to earn to break even? (Round any percentages to two decimal places and your final answer to the nearest cent.)

(Multiple Choice)

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Question 79

Emeka Company has provided the following information: Sales price per unit \ 52 Variable cost per unit 16 Fixed costs per month \ 14,000 Calculate the contribution margin per unit.

(Multiple Choice)

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Question 80

Exam 21: Cost-Volume-Profit Analysis

Complete the statement,using the following terms: increase,decrease,or have no effect on. Increases in total fixed costs________ contribution margin per unit and ________ the breakeven point.

CVP analysis assumes that the sales price per unit does not change as volume changes.

Dream Threads Company sells hand-sewn shirts for $40 per shirt.It incurs monthly fixed costs of $7000.The contribution margin ratio is calculated to be 50%.What is the breakeven point in units? (Round your answer up to the nearest whole unit.)

Contribution margin ratio is the ratio of contribution margin to net income.

Answer the following variable costing questions: Question Variable Costing Which costs are included as product costs? Which costs are included as period costs?

The sales required to achieve a target profit can be determined by using the contribution margin,contribution margin ratio,or break even approaches.

Which of the following will lower the breakeven point?

Gross profit is calculated by deducting ________ from sales revenue.

What is operating leverage? The degree of operating leverage is 2.75.What does this mean?

For every unit that is produced but not sold,absorption costing "hides" some of the fixed manufacturing overhead in ending Finished Goods Inventory.

Jeong Company incurs both fixed and variable production costs.Assuming that production is within the relevant range,if volume goes up by 20%,then the total costs would ________.

If the sales price of Product X is $24.00 per unit and unit fixed cost is $7.50,its contribution margin per unit is $16.50.

In absorption costing,the manufacturing costs expensed are greater than the amount expensed in variable costing when units produced are less than sold because the units in beginning inventory under absorption costing were assigned a greater cost in the previous accounting period.

Which of the following statements is TRUE if the variable cost per unit increases while the sales price per unit and total fixed costs remain constant?

Emeka Company has provided the following information: Sales price per unit \ 52 Variable cost per unit 16 Fixed costs per month \ 14,000 Calculate the contribution margin per unit.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets,natural Resources,and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

Complete the statement,using the following terms: increase,decrease,or have no effect on. Increases in total fixed costs contribution margin per unit and the breakeven point.