A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
| Selling price |
$110 |
|
|
| Units in beginning inventory |
0 |
| Units produced |
2,400 |
| Units sold |
2,100 |
| Units in ending inventory |
300 |
|
|
| Variable cost per unit: |
|
| Direct materials |
$41 |
| Direct labor |
$15 |
| Variable manufacturing overhead |
$7 |
| Variable selling and administrative |
$9 |
| Fixed costs: |
|
| Fixed manufacturing overhead |
$64,800 |
| Fixed selling and administrative expenses |
$8,400 |
|
The total gross margin for the month under absorption costing is:
|
|
$42,000 |
|
$14,700 |
|
$69,000 |
|
$79,800 |
|
Colasuonno Corporation has two divisions: the West Division and the East Division. The corporation's net operating income is $97,100. The West Division's divisional segment margin is $46,600 and the East Division's divisional segment margin is $173,800. What is the amount of the common fixed expense not traceable to the individual divisions?
|
|
$270,900 |
|
$220,400 |
|
$123,300 |
|
$143,700 |
|
The following data have been taken from the budget reports of Brandon company, a merchandising company.
|
|
Purchases |
Sales |
| January |
$270,000 |
$210,000 |
| February |
$270,000 |
$310,000 |
| March |
$270,000 |
$350,000 |
| April |
$250,000 |
$410,000 |
| May |
$250,000 |
$370,000 |
| June |
$230,000 |
$350,000 |
|
Thirty percent of purchases are paid for in cash at the time of purchase, and 35% are paid for in each of the next two months. Purchases for the previous November and December were $260,000 per month. Employee wages are 15% of sales for the month in which the sales occur. Selling and administrative expenses are 25% of the following month's sales. (July sales are budgeted to be $330,000.) Interest payments of $17,000 are paid quarterly in January and April. Brandon's cash disbursements for the month of April would be:
|
|
$404,500 |
|
$310,000 |
|
$435,000 |
|
$250,000 |
|
The Willsey Merchandise Company has budgeted $42,000 in sales for the month of December. The company's cost of goods sold is 20% of sales. If the company has budgeted to purchase $14,500 in merchandise during December, then the budgeted change in inventory levels over the month of December is:
|
|
$27,500 decrease |
|
$6,100 increase |
|
$19,100 decrease |
|
$24,200 increase |