STAnT Wawa manufactures 2 products, wheels and seats. The company has esu and 60
ID: 2430072 • Letter: S
Question
STAnT Wawa manufactures 2 products, wheels and seats. The company has esu and 600,000 seats each year. Each wheel uses 2 and each seat use 6. Ben Gordon, Inc. to wheels? 3 parts ) $220.000ch of the assembly overhead should be al B) $264,000 C) $282,856 D) $165,000 Curtis Corporation's contribution margin is s25 per unit for Product A and $30 for Ho ueructA requires 2 machine hours and Product B requires 4 machine hours. each product? Product E much is the contribution margin per unit of limited resource for A) $12.50 $8.33 B) $10.00 S7.50 C) $1000 $8.33 D) $12.50 $7.50 8. Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costs consist of assembly costs and inspection costs. The following Cost Assembly Inspections Titanium 500 mach. hours 350 2,100 labor hours 500 mach. hours $60,000 150 1,900 labor hours Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing Total overhead costs assigned to titanium racquets, using a single overhead rate, are A) $112,000. B) $100,000. C) $80,000. D) $84,000 9, Montoya Manufacturing has fixed costs of $3,000,000 and variable costs are 40% of sales. What are the required sales if Montoya desires net income of $300,000? A) $5,000,000 B) $7,500,000 C) $5,500,000 D) $8,250,000Explanation / Answer
6) Assembly overheads to be allocated to wheels = 660000*300000*2/(300000*2+600000*3) = 165000 Answer: Option [D] 7) CM per unit for A = 25/2 = 12.5 and for B = 30/4 = 7.50. Answer: Option [D] 8) Overhead costs assigned to Titanium racquets = 2100*160000/4000= 84000 Answer: Option [D] 9) Required sales = (3000000+300000)/40% = 8250000 Answer: Option [D] 15) Contribution margin of 580000-360000 = 220000 Answer: Option [B] 16) Answer: Option [C] 17) Overhead applied to Regular = (3000000+1500000)*10000/25000 = 1800000 Answer: Option [C] 18) Answer: Option [B] 23) Unit contribution margin = (2000000-700000)/200000 = 6.5 Answer: Option [C] 24) Variable cost = (260000-160000)/(90000-50000) = 2.5 Fixed cost = 260000-2.5*90000 = 35000 Answer: Option [D] 25) Answer: Option [C] 19) No deer = (64000-20000)/10 = 4400 Answer: Option [B] 20) Weighted average CM = 60*30%+90*70% = 81 Number of combined units to be sold for breaking even = 891000/81 = 11000 Units of Q drive = 11000*30% = 3300 Answer: Option [D] 21) Answer: Option [D] 22) Answer: Option [A] 10) Margin of safety = 800000/520000-1 = 54% Answer: Option [A] 11) Option [D] 12) CM ratio = 7/20 = 35% Option [A] 13) Machine set up cost pool to be assigned to sparklers = 360000*400/1000 = 144000 Option [D] 14) Option [A] 1) Option [D] 2) Option [B] 3) Increase = 50*100 = 5000 Option [D] 4) Weighted average CM = 60*30%+90*70% = 81 Option [A] 5) BEP in units = 300000/60 = 5000 Option [C]
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