1. Seemore Company manufactures binoculars. The actual costs for 2013 and 2014 were as follows:
| |
2013 |
|
2014 |
|
| Direct materials: |
|
|
|
|
| |
Plastic case |
$ 8.00 |
|
$ 7.60 |
|
| |
Lens set |
34.00 |
|
34.40 |
|
| Direct labor |
64.00 |
(1.6 hours) |
60.00 |
(1.5 hours) |
| Indirect manufacturing costs: |
|
|
|
|
| |
Variable |
16.00 |
|
14.20 |
|
| |
Fixed |
4.00 |
(100,000 units) |
3.80 |
(120,000 units)
|
Beginning in 2014, Seemore implemented a continuous improvement program that required a first-year cost reduction target of a 7 percent reduction of the 2013 base.
Seemore's continuous improvement target for direct labor in 2014 was:
Select one: A. $64.00 B. $60.00 C. $59.52 D. $70.40
2. Seemore Company manufactures binoculars. The actual costs for 2013 and 2014 were as follows:
| |
2013 |
|
2014 |
|
| Direct materials: |
|
|
|
|
| |
Plastic case |
$ 8.00 |
|
$ 7.60 |
|
| |
Lens set |
34.00 |
|
34.40 |
|
| Direct labor |
64.00 |
(1.6 hours) |
60.00 |
(1.5 hours) |
| Indirect manufacturing costs: |
|
|
|
|
| |
Variable |
16.00 |
|
14.20 |
|
| |
Fixed |
4.00 |
(100,000 units) |
3.80 |
(120,000 units)
|
Beginning in 2014, Seemore implemented a continuous improvement program that required a first-year cost reduction target of a 7 percent reduction of the 2013 base.
Seemore's continuous improvement target for plastic cases in 2014 was:
Select one: A. $8.00 B. $7.60 C. $7.44 D. $8.80
3. Periwinkle Manufacturing Company has the following budgeted costs for 10,000 units:
| |
Variable Costs |
Fixed Costs |
| Manufacturing |
$200,000 |
$ 75,000 |
| Selling & Administrative |
150,000 |
25,000 |
| Total |
$350,000 |
$100,000
|
What is the markup on variable costs needed to break even?
Select one: A. 28.6 percent B. 150.4 percent C. 33.3 percent D. 300.0 percent
4. Periwinkle Manufacturing Company has the following budgeted costs for 10,000 units:
| |
Variable Costs |
Fixed Costs |
| Manufacturing |
$200,000 |
$ 75,000 |
| Selling & Administrative |
100,000 |
25,000 |
| Total |
$300,000 |
$100,000
|
What is the markup on fixed costs needed to obtain a target profit of $125,000?
Select one: A. 300.0 percent B. 400.0 percent C. 150.0 percent D. 425.0 percent
5. Patrick Company has predicted the following costs for this year for 50,000 units:
| |
Manufacturing |
Selling and Administrative |
| Variable |
$ 400,000 |
$ 50,000 |
| Fixed |
600,000 |
150,000 |
| Total |
$1,000,000 |
$200,000
|
What is the manufacturing cost markup needed to obtain a target profit of $145,000?
Select one: A. 10.4 percent B. 33.5 percent C. 500.0 percent D. 34.5 percent