chapter 5 E5-8 - Monthly production costs in Pesavento...

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Unformatted text preview: Monthly production costs in Pesavento Company for two levels of production are as follows. Cost 3,000 units 6,000 units Indirect labor $10,000 $20,000 Supervisory salaries 5,000 5,000 Maintenance 4,000 7,000 Indicate which costs are variable, fixed, and mixed. Indirect labor variable Supervisory salaries fixed Maintenance mixed Bruno Manufacturing Inc. has sales of $2,200,000 for the first quarter of 2010. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold $920,000 $440,000 Selling expenses 70,000 45,000 Administrative expenses 86,000 98,000 Complete the CVP income statement for the quarter ended March 31, 2010. BRUNO MANUFACTURING INC. CVP Income Statement Sales 2200000 less variable cost-1076000 Contribution Margin 1124000 Less fixed cost-583000 Net income $ 541000 For Dousmann Company actual sales are $1,200,000 and break-even sales are $840,000. Compute the following (a) the margin of For Dousmann Company actual sales are $1,200,000 and break-even sales are $840,000....
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chapter 5 E5-8 - Monthly production costs in Pesavento...

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