Question

Kesterson Corporation has provided the following information:

	Cost per Unit		Cost per Period
Direct materials	$	6.30
Direct labor	$	3.30
Variable manufacturing overhead	$	1.25
Fixed manufacturing overhead			$	15,000
Sales commissions	$	1.30
Variable administrative expense	$	0.60
Fixed selling and administrative expense			$	4,200

If 7,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Multiple Choice

• $8,750

• $27,950

• $23,750

• $15,000

Pedregon Corporation has provided the following information:

	Cost per Unit			Cost per Period
Direct materials	$	7.30
Direct labor	$	4.20
Variable manufacturing overhead	$	1.55
Fixed manufacturing overhead				$	23,400
Sales commissions	$	0.75
Variable administrative expense	$	0.85
Fixed selling and administrative expense				$	4,900

If the selling price is $22.00 per unit, the contribution margin per unit sold is closest to:

Multiple Choice

• $3.45

• $5.05

• $7.35

• $10.50

Wimpy Inc. produces and sells a single product. The selling price of the product is $175.00 per unit and its variable cost is $63.00 per unit. The fixed expense is $368,064 per month.

The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

• $1,022,400

• $654,336

• $575,100

The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $7 per direct labor-hour; the budgeted fixed manufacturing overhead is $82,000 per month, of which $15,700 is factory depreciation.

If the budgeted direct labor time for November is 7,700 hours, then the total budgeted manufacturing overhead for November is:

Multiple Choice

• $82,000

• $120,200

• $135,900

• $151,600

Answer 1