Morganti Corporation sells a product for $ 140 per unit. The pro its break even

Question

Morganti Corporation sells a product for $ 140 per unit. The pro its break even sales are 40,700 units, and its break-even sales are 31,339 units. What is the margin of safely $1,310,540 $4,387,460 $3,798,667 $5698,000 The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor hours. The direct labor budget indicates that 4 $00 direct labor hours will Ik required in August. The variable overhead rate is $9.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $96040 per month, which includes depreciation of $7,350. All other fixed manufacturing overhead costs represent current cash flows. What should the August cash disbursements for manufacturing overhead on the manufacturing overhead budget be? $88,690 $142,100 $46,060 $134,750

Explanation / Answer

1. A.= $1,310,540

Margin of safety = Sales – Break even sales
=(40,700- 31,339)140
= $1,310,540

2. D. $134,750

(Fixed Man OH - Depriciation ) + Variable OH

(96040-7350)+(4900*9.40) = $134,750

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