Mid-Term Exam Accounting 5250
Answer the following questions show all work on how you came to get your answer… NO PLAGIARISM ALLOWED!!!
1. Variable Costs of Goods Sold $640,000
Fixed Administrative Costs 220,000
Fixed selling expenses 100,000
Variable Administrative Costs 60,000
Variable selling expenses 140,000
What is the company’s CONTRIBUTION MARGIN?
2. Northern Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the beginning of the year the company estimated manufacturing overhead would be $400,000 and direct labor hours would be 40,000. The actual figures for the year were $430,000 for overhead and 42,000 direct labor hours. IS THE MANUFACTURING OVERHEAD OVER APPLIED OR UNDERAPPLIED FOR THE YEAR AND BY HOW MUCH?
2. WT Co. sells a single product for $30 per unit. Variable costs are $18 per unit. Total fixed costs are $60,000. What is the Breakeven point in dollars and units?
3. In # 4 above what is the contribution margin per unit? How many units must be sold to earn a target profit of $200,000?
3. Expected Activity
Estimated Cost Product A Product B
$28,000 400 300
What is the activity rate under ABC costing for this activity?
How much total cost is expected to be individually assigned to Products A and B for this activity?
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