Week 3 Class Exercise

# Week 3 Class Exercise - c What would the total factory...

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Week 3 Class Exercises 1. Frances Company produces only product A. The following information is available: Selling price per unit \$95 Variable costs per unit \$65 Total fixed costs \$130,000 Required: a. Compute break-even point in units. b. Compute break-even volume in dollars. c. Compute the margin of safety assuming planned unit sales of 7,000.

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2. The Rams Company has provided the following information: Direct Month Factory Overhead Labor Hours July \$92,095 4,900 August 105,056 5,480 September 83,802 3,760 October 99,594 4,420 November 108,694 5,720 December 97,404 3,980 a. Using the high-low method, calculate the total fixed factory overhead cost and the variable factory overhead cost per direct labor hour. b. Prepare the cost function.
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Unformatted text preview: c. What would the total factory overhead cost be at a level of 8,000 hours? 3. Happy Corporation has supplied the following information for the year ended December 31, 20X0: Direct labor 16,480 Direct material purchases 19,260 General and administrative expenses 14,240 Indirect manufacturing costs 16,780 Selling expenses 13,520 Beginning direct materials inventory 2,460 Direct materials used 2,900 Big Corporation produces 8,000 units. There was no beginning balance or ending balance work-in-process inventory. Ending inventory consisted of 1,000 finished units. Required: a. Prepare the inventories section of the balance sheet. b. Compute the cost of goods sold....
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Week 3 Class Exercise - c What would the total factory...

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