1. The following cost data pertain to the operations of Rademaker Department Sto

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Question

The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March.

Corporate headquarters building lease

$87,600

Cosmetics Department sales commissions--Northridge Store

$5,230

Corporate legal office salaries

$60,500

Store manager's salary-Northridge Store

$17,200

Heating-Northridge Store

$20,200

Cosmetics Department cost of sales--Northridge Store

$37,400

Central warehouse lease cost

$11,100

Store security-Northridge Store

$18,900

Cosmetics Department manager's salary--Northridge Store

$4,150

The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

$42,630

$46,780

$101,130

$37,400

Erkkila Inc. reports that at an activity level of 7,300 machine-hours in a month, its total variable inspection cost is $425,030 and its total fixed inspection cost is $192,204.

What would be the average fixed inspection cost per activity unit at an activity level of 7,600 machine-hours in a month? Assume that this level of activity is within the relevant range.

rev: 03_22_2017_QC_CS-83283

$25.29

$84.55

$26.33

$31.89

Younger Corporation reports that at an activity level of 3,000 units, its total variable cost is $147,570 and its total fixed cost is $75,144.

Required:

For the activity level of 3,100 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range. (Round your "Average cost" to 2 decimal places and other answers to the nearest dollar amount.)

a) Total variable cost _________________

b) Total fixed cost _________________

c) Total cost _________________

d) Average variable cost _________________ per unit

e) Average fixed cost _________________ per unit

f) Average total cost _________________ per unit

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Activities

Activity Rate

Setting up batches

$94.25

per batch

Processing customer orders

$83.89

per customer order

Assembling products

$18.11

per assembly hour

Data concerning two products appear below:

Product V09X

Product A09X

Number of batches

Number of customer orders

Number of assembly hours

494

699

How much overhead cost would be assigned to Product V09X using the activity-based costing system?

$196.25

$192,320.37

$17,483.67

$6,691.75

Jeanlouis, Inc., manufactures and sells two products: Product D0 and Product D5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Estimated

Expected Activity

Activity Cost Pools

Activity Measures

Overhead Cost

Product D0

Product D5

Total

Labor-related

DLHs

$313,743

3,600

3,300

6,900

Production orders

orders

70,264

300

500

800

General factory

MHs

253,555

4,300

4,200

8,500

$637,562

The total overhead applied to Product D5 under activity-based costing is closest to:

$319,252

$125,286

$304,920

$273,240

Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March.

Sales (7,700 units)

$400,400

Variable expenses

246,400

Contribution margin

154,000

Fixed expenses

103,500

Net operating income

$50,500

If the company sells 7,600 units, its net operating income should be closest to:

$46,000

$48,500

$50,500

$49,979

Dybala Corporation's produces and sells a single product. Data concerning that product appear below:

Per Unit

Percent of Sales

Selling price

$150

100%

Variable expenses

50%

Contribution margin

$ 75

50%

The company is currently selling 4,800 units per month. Fixed expenses are $302,600 per month. The marketing manager believes that a $7,200 increase in the monthly advertising budget would result in a 210 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Decrease of $7,200

Increase of $8,550

Decrease of $8,550

Increase of $15,750

Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)

Selling price per unit

180.00

Variable expense per unit

68.40

Fixed expense per month

130,200

The break-even in monthly dollar sales is closest to:

$210,000

$289,800

$130,200

$420,000

Data concerning Cutshall Enterprises Corporation's single product appear below:

Selling price per unit

245.00

Variable expense per unit

100.00

Fixed expense per month

455,840

The unit sales to attain the company's monthly target profit of $36,000 is closest to: (Do not round your intermediate calculations.)

3,144

2,008

4,918

3,392

10.

A cement manufacturer has supplied the following data:

Tons of cement produced and sold

240,000

Sales revenue

$944,000

Variable manufacturing expense

$225,000

Fixed manufacturing expense

$292,000

Variable selling and administrative expense

$105,400

Fixed selling and administrative expense

$86,000

Net operating income

$235,600

The company's contribution margin ratio is closest to:

45.2%

65.0%

69.1%

25.0%

11.

Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below:

Sales (5,000 units)

295,000

Variable expenses

100,000

Contribution margin

195,000

Fixed expenses

105,800

Net operating income

89,200

Required:

Redo the company's contribution format income statement assuming that the company sells 5,200 units.

Net operating income ___________________

12.

The contribution margin ratio of Donath Corporation's only product is 66%. The company's monthly fixed expense is $454,600 and the company's monthly target profit is $40,600.

Required:

Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest dollar amount.)

Sales __________

13.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price

$149

Units in beginning inventory

Units produced

2,770

Units sold

2,520

Units in ending inventory

250

Variable costs per unit:

Direct materials

$51

Direct labor

$20

Variable manufacturing overhead

$10

Variable selling and administrative

$12

Fixed costs:

Fixed manufacturing overhead

$96,950

Fixed selling and administrative expenses

$35,280

The total gross margin for the month under absorption costing is:

$83,160

$17,640

$130,320

$141,120

14.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Units in beginning inventory

Units produced

4,700

Units sold

4,600

Units in ending inventory

100

Variable costs per unit:

Direct materials

Direct labor

Variable manufacturing overhead

Variable selling and administrative

Fixed costs:

Fixed manufacturing overhead

98,700

Fixed selling and administrative

46,000

What is the variable costing unit product cost for the month?

$150 per unit

$171 per unit

$132 per unit

$139 per unit

15.

Bartelt Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced

1,000

Variable costs per unit:

Direct materials

$50

Direct labor

$47

Variable manufacturing overhead

Variable selling and administrative expense

Fixed costs:

Fixed manufacturing overhead

$31,000

Fixed selling and administrative expense

$69,000

There were no beginning or ending inventories. The absorption costing unit product cost was:

$97 per unit

$130 per unit

$99 per unit

$207 per unit

16.

Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $9.20 per direct labor-hour. The production budget calls for producing 4,400 units in June and 4,900 units in July.

Required:

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.)

JUNE JULY

Required production in units ___________ ___________

Direct labor hours per unit ___________ ___________

Total direct labor hours needed ___________ ___________

Direct labor cost per hour ___________ ___________

Total direct labor cost ___________ ___________

The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March.

Corporate headquarters building lease

$87,600

Cosmetics Department sales commissions--Northridge Store

$5,230

Corporate legal office salaries

$60,500

Store manager's salary-Northridge Store

$17,200

Heating-Northridge Store

$20,200

Cosmetics Department cost of sales--Northridge Store

$37,400

Central warehouse lease cost

$11,100

Store security-Northridge Store

$18,900

Cosmetics Department manager's salary--Northridge Store

$4,150

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

$42,630

$46,780

$101,130

$37,400

Erkkila Inc. reports that at an activity level of 7,300 machine-hours in a month, its total variable inspection cost is $425,030 and its total fixed inspection cost is $192,204.

What would be the average fixed inspection cost per activity unit at an activity level of 7,600 machine-hours in a month? Assume that this level of activity is within the relevant range.

rev: 03_22_2017_QC_CS-83283

$25.29

$84.55

$26.33

$31.89

Younger Corporation reports that at an activity level of 3,000 units, its total variable cost is $147,570 and its total fixed cost is $75,144.

Required:

a) Total variable cost _________________

b) Total fixed cost _________________

c) Total cost _________________

d) Average variable cost _________________ per unit

e) Average fixed cost _________________ per unit

f) Average total cost _________________ per unit

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Activities

Activity Rate

Setting up batches

$94.25

per batch

Processing customer orders

$83.89

per customer order

Assembling products

$18.11

per assembly hour

Data concerning two products appear below:

Product V09X

Product A09X

Number of batches

Number of customer orders

Number of assembly hours

494

699

How much overhead cost would be assigned to Product V09X using the activity-based costing system?

$196.25

$192,320.37

$17,483.67

$6,691.75

Estimated

Expected Activity

Activity Cost Pools

Activity Measures

Overhead Cost

Product D0

Product D5

Total

Labor-related

DLHs

$313,743

3,600

3,300

6,900

Production orders

orders

70,264

300

500

800

General factory

MHs

253,555

4,300

4,200

8,500

$637,562

The total overhead applied to Product D5 under activity-based costing is closest to:

$319,252

$125,286

$304,920

$273,240

Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March.

Sales (7,700 units)

$400,400

Variable expenses

246,400

Contribution margin

154,000

Fixed expenses

103,500

Net operating income

$50,500

If the company sells 7,600 units, its net operating income should be closest to:

$46,000

$48,500

$50,500

$49,979

Dybala Corporation's produces and sells a single product. Data concerning that product appear below:

Per Unit

Percent of Sales

Selling price

$150

100%

Variable expenses

50%

Contribution margin

$ 75

50%

Decrease of $7,200

Increase of $8,550

Decrease of $8,550

Increase of $15,750

Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)

Selling price per unit

180.00

Variable expense per unit

68.40

Fixed expense per month

130,200

The break-even in monthly dollar sales is closest to:

$210,000

$289,800

$130,200

$420,000

Data concerning Cutshall Enterprises Corporation's single product appear below:

Selling price per unit

245.00

Variable expense per unit

100.00

Fixed expense per month

455,840

The unit sales to attain the company's monthly target profit of $36,000 is closest to: (Do not round your intermediate calculations.)

3,144

2,008

4,918

3,392

10.

A cement manufacturer has supplied the following data:

Tons of cement produced and sold

240,000

Sales revenue

$944,000

Variable manufacturing expense

$225,000

Fixed manufacturing expense

$292,000

Variable selling and administrative expense

$105,400

Fixed selling and administrative expense

$86,000

Net operating income

$235,600

The company's contribution margin ratio is closest to:

45.2%

65.0%

69.1%

25.0%

11.

Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below:

Sales (5,000 units)

295,000

Variable expenses

100,000

Contribution margin

195,000

Fixed expenses

105,800

Net operating income

89,200

Required:

Redo the company's contribution format income statement assuming that the company sells 5,200 units.

Net operating income ___________________

12.

The contribution margin ratio of Donath Corporation's only product is 66%. The company's monthly fixed expense is $454,600 and the company's monthly target profit is $40,600.

Required:

Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest dollar amount.)

Sales __________

13.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price

$149

Units in beginning inventory

Units produced

2,770

Units sold

2,520

Units in ending inventory

250

Variable costs per unit:

Direct materials

$51

Direct labor

$20

Variable manufacturing overhead

$10

Variable selling and administrative

$12

Fixed costs:

Fixed manufacturing overhead

$96,950

Fixed selling and administrative expenses

$35,280

The total gross margin for the month under absorption costing is:

$83,160

$17,640

$130,320

$141,120

14.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Units in beginning inventory

Units produced

4,700

Units sold

4,600

Units in ending inventory

100

Variable costs per unit:

Direct materials

Direct labor

Variable manufacturing overhead

Variable selling and administrative

Fixed costs:

Fixed manufacturing overhead

98,700

Fixed selling and administrative

46,000

What is the variable costing unit product cost for the month?

$150 per unit

$171 per unit

$132 per unit

$139 per unit

15.

Bartelt Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced

1,000

Variable costs per unit:

Direct materials

$50

Direct labor

$47

Variable manufacturing overhead

Variable selling and administrative expense

Fixed costs:

Fixed manufacturing overhead

$31,000

Fixed selling and administrative expense

$69,000

There were no beginning or ending inventories. The absorption costing unit product cost was:

$97 per unit

$130 per unit

$99 per unit

$207 per unit

16.

Required:

JUNE JULY

Required production in units ___________ ___________

Direct labor hours per unit ___________ ___________

Total direct labor hours needed ___________ ___________

Direct labor cost per hour ___________ ___________

Total direct labor cost ___________ ___________

The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March.

Explanation / Answer

Solution 1:

Direct cost of Cosmetic department = Cosmetics Department sales commissions--Northridge Store + Cosmetics Department cost of sales--Northridge Store + Cosmetics Department manager's salary--Northridge Store

= $5,230 + $37,400 + $4,150 = $46,780

Hence 2nd option is correct.

Solution 2:

Fixed inspection cost = $192,204

Activity level = 7600 machine hours

Average fixed inspection cost per activity unit = $192,204 / 7600 = $25.29 per machine hour

Hence 1st option is correct.

Note: As Multiple questions are posted, as per chegg policy i have to answer first question only though i have answered first 2 questions. Kindly post separate question for answer of remaining questions.

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