22. The break-even in sales dollars for Carrejo Corporation is closest to: A) S

Question

22. The break-even in sales dollars for Carrejo Corporation is closest to: A) S 84,242 B) 5307,968 C) $392,211 D) $440,340 23. Which costing method will produce the higher values for work in process and finished good A) Absorption costing B) Variable costing C) They produce the same values for these inventories D) It depends (Questions 24-25) Dreamland Pillow Company sells the "Old Soft" model for $20 each. On requires 2 pounds of raw materials and 1 hour of direct labor to manufacture. Raw material costs $3 per pound and direct production labor is paid $4 per hour. Fixed sup are $2,000 per month and Dreamland rents its factory on a five-year lease for $4,000 per m 24. What is the variable cost per unit of the "Old Soft" pillow? A) $3 B) $4 C) $7 D) $10 25. How many pillows must Dreamland produce and sell each month to earn a monthl A) 700 B) 600 C) 350 D) 300

Explanation / Answer

24 Variable Cost

Direct Material (2 pound*$3) = $6

Direct Labour (1 hours*$4) = $4

Total Variable Cost = $10

25 Calculation of Production Quantity

Fixed Cost per month = 4000+ 2000 = $6000

Break even qty = Fixed cost/ Variable cost

= 6000/10

= 600 Units

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