Question

Question 3 (1 point)

Triton Company's copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of copies:

Salaries (fixed)	$82,000
Employee benefits (fixed)	10,000
Depreciation of copy machines (fixed)	10,000
Utilities (fixed)	5,000
Paper (variable, 1 cent per copy)	50,000
Toner (variable, 1 cent per copy)	50,000

The costs are assigned to two cost pools, one for fixed and one for variable costs. The costs are then assigned to the sales department and the administrative department. Fixed costs are assigned on a lump-sum basis, 40 percent to sales and 60 percent to administration. The variable costs are assigned at a rate of 2 cents per copy.

Assuming the following copies were made during the year, 2,539,000 for sales and 2,852,250 for administration, calculate the copy department costs allocated to sales.

Round to two decimal places.

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Question 5 (1 point)

Mama Italiano Sauce is in the process of preparing a production cost budget for May. The actual costs in April were:

Mama Italian Sauce
Production Cost Budget
April 2008
Production - Jars of sauce	20,000
Ingredient cost (variable)	$16,000
Labor cost (variable)	9,000
Rent (fixed)	4,000
Depreciation (fixed)	6,000
Other (fixed)	1,000
Total	$36,000

Using this information, prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 23,000 jars of sauce reflecting anticipated sales increase related to a new marketing campaign

Round to two decimal places.

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Question 6 (1 point)

Consider the production cost information for Mama Italiano Sauce given below:

Mama Italian Sauce
Production Cost Budget
April 2008
Production - Jars of sauce	20,000
Ingredient cost (variable)	$16,000
Labor cost (variable)	9,000
Rent (fixed)	4,000
Depreciation (fixed)	6,000
Other (fixed)	1,000
Total	$36,000

The company is currently producing and selling jars of sauce The jars of sauce sell for $4 per jar. The company is considering lowering the price to $3.70 per jar. Suppose this action will increase sales. What is the incremental costs associated with producing an extra 70,250 jars of sauce?

Round to two decimal places.

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Question 7 (1 point)

Consider the production cost information for Mama Italiano Sauce given below:

Mama Italiano Sauce
Production Cost Budget
April 2008
Production - Jars of sauce	20,000
Ingredient cost (variable)	$16,000
Labor cost (variable)	9,000
Rent (fixed)	4,000
Depreciation (fixed)	6,000
Other (fixed)	1,000
Total	$36,000

The company is currently producing and selling 250,000 jars of sauce annually. The jars of sauce sell for $4 per jar. The company is considering lowering the price to $3.70 per jar. Suppose this action will increase sales to 322,500 jars of sauce. What is the incremental revenue associated with the price reduction of sauce?

Round to two decimal places.

Your Answer:

Question 7 options:

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Answer 1

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Mar April 16000 O87 81 L1b000x1-1 Ingutunte Laber lent 1000x1- CAxed CFked Fined J0350 1000 4000 4000 Rent bepuin Oter 10 I000 1000 3475 36000 II Totel 12 B6) Cusrent r 9mctim - 20000 Prepesed praclucaon-90250 inerane 1 351-25. 3-5125 2 20000 Thre variahle vets willinar by his propertin Prefeec 3 unrnt Ingedine S200 C9000135125 (Fixed CFixed) CFxed) Lkor 31612 S 4 Cent 4000 6000 Lent 4000 Dupreaiatim oher s 98812 5 6 Tetal 36000 Inrmunta cest 98812 5-36099 =62812.S nOTes eaLi

B7) reenr Reverue - 2 S0000 x 4 8 -1,000, D00 32 2 S00 x 3 Reenue aptu leweniny price 1,143 250 10 D.s ,193, 250-1000, 000 1a3,250 11 Inuremental Revenue 12