Question
At a break-even point of 400 units sold, variable expenses were $4,000, and fixed expenses were $2,000. What will the 401st unit sold contribute to profit?
Question
Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:
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Production Cost Data
|
|
Direct materials
|
$153,000
|
|
Direct labor
|
$110,500
|
|
Variable manufacturing overhead
|
$204,000
|
|
Fixed manufacturing overhead
|
$255,000
|
Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost.
Under absorption costing, the carrying value on the balance sheet of the ending inventory for the year would be
Question
Gargymal Company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the past five months of operations.
|
|
Machine Hours
|
Electrical Cost
|
|
August
|
1,000
|
$1,620
|
|
September
|
900
|
$1,510
|
|
October
|
1,500
|
$1,870
|
|
November
|
2,000
|
$1,950
|
|
December
|
1,300
|
$1,730
|
Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to which of the following?