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) The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. Variable manufacturing overhead...

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1.) The following information was taken from the annual manufacturing overhead cost budget of Fergie  Manufacturing. Variable manufacturing overhead costs $69,300 Fixed manufacturing overhead costs $41,580 Normal production level in labor hours 23,100 Normal production level in units 5,775 Standard labor hours per unit 4 During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was  $113,400. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs.  Overhead is applied on the basis of direct labor hours. Fergie's volume overhead variance is…… 2.)  Mink Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost of the  unassembled product is $60 and Mink would sell it for $130. The cost to assemble the product is estimated at $42 per  unit and the company believes the market would support a price of $170 on the assembled unit. What decision should  Mink make? A:Process further, the company will be better off by $58 per unit. B:Sell before assembly, the company will be better off by $2 per unit. C:Process further, the company will be better off by $28 per unit. D:Sell before assembly, the company will be better off by $40 per unit. 3.)  A company has three product lines, one of which reflects the following results: Sales $430,000 Variable expenses 250,000 Contribution margin 180,000 Fixed expenses 280,000 Net loss $ (100,000) If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to  other product lines. If management decides to eliminate this product line, the company's net income will…. . 4.)  How is annual cash inflow determined? A:Depreciation is subtracted from net income because it is an expense. B:Depreciation is subtracted from net income because it is an outflow of cash. C:Depreciation is added back to net income because it is not an outflow of cash. D: Depreciation is added back to net income because it is an inflow of cash. 5.) A company can produce and sell only one of the following two products:   Machine Hours Required   Contribution Margin Per Unit Product 1 3   $60 Product 2 2   $50
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If the company has machine capacity of 2,000 hours, what is the total contribution margin of the product it should  produce to maximize net income?
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Hi, Please find the... View the full answer


1 Variable Overhead
Fixed overhead
Total Overhead
Standard Hours allowed Actual
22400 71820
18430 Factory overhead volume...

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