Jake’s Roof Repair has provided the following data concerning its costs:

For example, wages and salaries should be $21,300 plus $15.00 per repair-hour. The company expected to work 2,700 repair-hours in May, but actually worked 2,600 repair-hours. The company expects its sales to be $48.00 per repair-hour.

Required:

Compute the company’s activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Jake’s Roof Repair has provided the following data concerning its costs:

For example, wages and salaries should be $21,400 plus $15.00 per repair-hour. The company expected to work 2,600 repair-hours in May, but actually worked 2,500 repair-hours. The company expects its sales to be $51.00 per repair-hour.

Required:

Compute the company’s activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data for Morton’s two divisions are available below. Note: All of Morton Company’s products are sold in competitive markets.

                                                                    Missile                                Salt

                                                                 Products                       Products

Sales                                                     $1,500,000                    $1,000,000

Direct labor                                            (800,000)                       (300,000)

Direct materials                                     (100,000)                         (40,000)

Manufacturing overhead*                    (400,000)                       (150,000)

Gross profit                                            $200,000                        $510,000

*Manufacturing overhead is allocated to production based on the amount of direct labor cost.

        Morton has determined that its total manufacturing overhead cost of $550,000 is a mixture of batch-level costs and product line costs. Morton has assembled the following information concerning the manufacturing overhead costs, the annual number of production batches, and the number of product lines in each division.

                                                          Total

                                          Manufacturing

                                                  Overhead                      Missile                        Salt

                                                         Costs                   Products               Products

Batch-level overhead               $250,000               10 batches            90 batches

Product line overhead               300,000                       3 lines                   7 lines

                                                   $550,000

        Which ONE of the following statements is MOST CORRECT?

• If the activity-based costing system had been used in the most recent year in place of the traditional overhead allocation technique, profit for the Missile Division would have increased by $25,000.

• If the activity-based costing system had been used in the most recent year in place of the traditional overhead allocation technique, profit for the Missile Division would have decreased by $25,000.

• If the activity-based costing system had been used in the most recent year in place of the traditional overhead allocation technique, profit for the Missile Division would have increased by $260,000.

• If the activity-based costing system had been used in the most recent year in place of the traditional overhead allocation technique, profit for the Missile Division would have decreased by $260,000.

• If the activity-based costing system had been used in the most recent year in place of the traditional overhead allocation technique, profit for the Salt Division would have decreased by $285,000.

• If the activity-based costing system had been used in the most recent year in place of the traditional overhead allocation technique, profit for the Salt Division would have increased by $285,000.

9). Truong Company's Assembly Department has materials cost at-$3 per unit and conversion cost at-$6 per unit. There are 15,000-units in ending inventory, all of which are 70% complete as to conversion costs. How much are total costs to be assigned to ending inventory (EI) ?

A) $63,000.

B) $108,000.

C) $94,500.

D) $135,000.

10). The Anfa Company's Assembly Department has materials cost at $4 per unit and conversion cost at $8 per unit. There are 15,000 units in ending (EI) inventory, all of which are 70% complete as to conversion costs. How much are total costs to be assigned to ending inventory (EI) ?

A) $84,400.

B) $144,000.

C) $126,600.

D) $180,000.

11). At the high level of activity in November, 7,000 machine hours were run and power costs were $18,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $9,000. Using the high-low method, the estimated fixed cost (F /C) element of power costs is

A) $18,000.

B) $9,000.

C) $5,400.

D) $12,600.

Lamps R Us makes lamps.  The variable materials cost $8.85 per unit.  The variable labor cost is $8.10 per unit.  (10 points)

1. what is variable cost per unit
2. suppose Lamps R Us has fixed costs of $800,000 during the year in which its total production is 150,000 units.  What are the total costs for the year?
3. If the selling price is $39.99 per unit.  Does Lamps R Us break even on a cash basis?  If depreciation is $400,000 per year, what is the accounting break-even point?

Jake’s Roof Repair has provided the following data concerning its costs:

For example, wages and salaries should be $20,500 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours in May, but actually worked 2,400 repair-hours. The company expects its sales to be $50.00 per repair-hour.

Required:

Compute the company’s activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

It is expected that 21,300 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 25,825 units

B. What is the expected contribution margin ratio?

C. Determine the break-even sales in units and dollars. Start by using the contribution margin ratio (part B.) and then round your answers to the nearest whole number.

D. Construct a cost-volume-profit chart on your own paper. What is the break-even sales?

$

E. What is the expected margin of safety in dollars and as a percentage of sales? If applicable, use amounts previously computed and then round your answers to the nearest whole number.

F. Determine the operating leverage. Round to one decimal place.

1) Conlon Enterprises reports the following information about resources.

Required:

Compute unused setup and clerical resource capacity for Conlon Enterprises.

2)

Tri-State Mill uses a special sander to finish lumber. Data on the sander and its usage follow.

Required:

Compute unused resource capacity in energy and repairs for Tri-State Mill.

Unused Resource Capacity

Energy -

Repairs-

Explain why a firm's long-run total cost is no greater than its short-run total cost. Under what circumstances will the two be equal? Illustrate both types of total cost in a diagram.