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Figure8 2 loringcompanyhadthefollowingdataforthemonth

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Figure 8-2.Loring Company had the following data for the month:Variable costs per unit:Direct materials$4.00Direct labor3.20Variable overhead1.00Variable selling expenses.40Fixed overhead is $4,000 per month; it is applied to production based on normal activity of 2,000 units. During the month, 2,000 units were produced. Loring started the month with 300 units in beginning inventory, with unitproduct cost equal to this month's unit product cost. A total of 2,100 units were sold during the month at price of$14. Selling and administrative expense for the month, all fixed, totaled $3,600.          Refer to Figure 8-2. What is the unit product cost under absorption costing?a.$8.60b.$10.60c.$8.20d.$10.20e.$7.20ANS: DDirect materials$  4.00Direct labor3.20Variable overhead1.00Fixed overhead    2.00Total$10.20
15Figure 8-12.Assume the following information for a product line:Sales$700,000 Variable expenses185,000Direct fixed expenses115,000Variable selling and administrative expenses70,000Direct fixed selling and admin. expenses90,000           Refer to Figure 8-12. What is the contribution margin of the product line?
16           During the month of March, Baker's Express purchased 10,000 pounds of flour at $1 per pound. At the end of March, Baker's Express found that it had an unfavorable materials price variance of $500. The standard cost per pound must be
17           During the month of March, Baker's Express purchased 10,000 pounds of flour at $1 per pound. At the end of March, Baker's Express found that it had a favorable materials price variance of $500. The standard cost per pound must be

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Term
Fall
Professor
N/A
Tags
Accounting, c, Morrow, Econo Company

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