The following variances data belong to the January 2012 Materials price

The following variances data belong to the january

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The following variances data belong to the January 2012: Materials price variance: $2,600 Unfavorable Materials quantity variance: $2,000 Unfavorable Direct labor rate variance: $1,520 Unfavorable Direct labor efficiency variance: $1,600 Favorable Required: 1. Compute standard quantity of direct materials allowed (in pounds) for January production. 2. Compute the actual quantity of materials used (in pounds) for January production. 3. Compute the standard direct labor hours allowed for January production. 4. Compute actual direct labor hours worked for January production. 5. Compute actual direct labor rate. Q.2) Following is the contribution margin income statement of a single product company: Sales $ 1,200,000 $80 Less variable expenses 840,000 56 Contribution Margin 360,000 24 Less fixed expenses 300,000 Net operating income 60,000 Required: 1. Calculate break-even point in units and dollars. 2. What is the contribution margin at break-even point? 3. Compute the number of units to be sold to earn a profit of $36,000. 4. Compute the margin of safety using original data. 5. Compute CM ratio. Compute the expected increase in monthly net operating if sales increase by $160,000 and fixed expenses do not change.
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