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Question 1 The contribution margin ratio is computed as: Question 1...

Question 1
The contribution margin ratio is computed as:
Question 1 options:

sales divided by contribution margin

contribution margin divided by sales dollars

contribution margin divided by cost of sales

contribution margin divided by variable cost of sales

Question 2
Dorchester Company, on March 1, 2021 has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. On March 1, Dorchester started into production 14,500 units. At the end of the month there were 10,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 60% complete with respect to conversion. For the month of March the following costs were incurred and recorded in the WIP:
           Direct Material                      $21,000
           Direct Labor                              32,000
           Factory Overhead                    10,000
Dorchester uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March. Round answer to closest cent.

Question 3
During March 2021, Virginia Bay Corporation recorded $275,000 of costs related to factory overhead.  Virginia Bay's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $292,000 would be incurred, and 8,400 direct labor hours would be worked.  During March, 11,000 hours were actually worked. Use this information to determine the standard overhead rate.  Round to closest cent.

Question 4
Annapolis Clothing Company manufactures quality boating attire.  The following selected financial information for the fiscal year 2020 is provided:
Item Amount
Sales $200,000
Cost of Goods Manufactured 54,000
Direct Material Purchased 80,000
Factory Overhead 20,000
Work in Process - January 1 60,000
Work in Process - December 31 30,000
Direct Material - December 31 20,000
Finished Goods Inventory - December 31 30,000
Net Income 30,000
Direct Materials used 60,000
Cost of Goods Sold 58,000
Use this information to determine the dollar amount of Annapolis Clothing's Finished Goods Inventory for January 1, 2020. Round to a whole number (no cents).

Question 5

Which of the following causes the difference between the planned and actual contribution margin?
Question 5 options:

an increase or decrease in the amount of sales

an increase in the amount of variable costs and expenses

a decrease in the amount of variable costs and expenses

all of the above

 

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