Midterm1 Spr2010

Ny deli operates a popular sandwich shop on campus it

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Unformatted text preview: ugh 13. NY Deli operates a popular sandwich shop on campus. It presented the following information for the month ending December 31, 2009. Total Per Unit Sandwiches Sold 12,000 Revenue Materials (bread, meat, cheese, vegetables) Direct labor Variable manufacturing overhead Variable marketing and administrative expense Fixed manufacturing overhead (oven) Fixed marketing and administrative expense Operating Income 108,000 36,000 10,800 3,600 6,000 27,000 12,600 $12,000 $9.00 3.00 0.90 0.30 0.50 2.25 1.05 $1.00 11. Compute NY Deli’s gross margin. 12. NY Deli expects its sales volume to decrease to 8,000 sandwiches in March because students will leave campus for spring break. Compute the operating income that NY Deli should expect for March. If it will show a loss, write the amount in parentheses. 13. How many sandwiches must NY Deli sell in March in order to achieve a total cost per sandwich of $8.50? If it is not possible to compute this amount, write “not possible” as your answer. 6A:002 Spring 2010 – Midterm 1 Page 8 Use the following information about Excelsior to answer questions 14 through 16. Excelsior Yachts manufactures custom yachts. Its job costing system reported the following information: Total Manufacturing Yacht ---------------Date --------------Total Cost Cost Added Name Started Finished Sold to November 30 in December Adios Dinero 11/5 11/24 12/7 $275,000 Lil’ Fishy 11/17 12/5 12/15 110,000 $230,000 Aye Sea U 11/22 11/30 11/30 310,000 Seas The Day 11/30 12/16 1/14 25,000 325,000 Y-Knot 12/5 1/1 1/20 145,000 Aloan Again 12/23 1/5 2/21 80,000 14. Compute Excelsior’s cost of goods sold for December. 15. Compute Excelsior’s beginning work in process inventory for December. 16. Excelsior prices it yachts so that it makes a gross margin equal to 40% of sales revenue. What price should it set for Lil’ Fishy? 6A:002 Spring 2010 – Midterm 1 Page 9 Use the following information about Outdoor to answer questions 17 through 19. Outdoor Adventures makes wooden treehouses. Direct materials (wood) and direct labor are traced directly to the treehouses. Manufacturing overhead costs are allocated using a predetermined rate based on direct labor cost. Outdoor reported the following information for...
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