Question

Bonita is a nonprofit organization that captures stray deer bewildered within residential communities. Fixed costs are $20000. The variable cost of capturing each deer is $10 each. Bonita is funded by a local philanthropy in the amount of $56000 for 2016. How many deer can Bonita capture during 2016? 4000 7600 3600 5600

Answer 1

1
Amount available to cover variable costs	36000	=56000-20000
Divide by variable cost of capturing each deer	10
Deer Bonita can capture during 2016	3600
Option C 3600 is correct
2
Costs incurred before split off point are sunk costs
Sunk costs are past costs which have already been incurred.
Option C sunk costs is correct
3
Expected annual manufacturing overhead	760000
Divide by Total annual direct labor hours	32000
Overhead rate	23.75
Hours required for each unit of Planter	2
X Overhead rate	23.75
Overhead assigned to each unit of Planter	48
Option C $48 is correct
4
Expected annual manufacturing overhead	156000	=58000+98000
Divide by Total annual direct labor hours	4000	=2100+1900
Overhead rate	39
Total hours required for Titanium racquets	2100
X Overhead rate	39
Overhead assigned to Titanium racquets	81900
Option D $81900 is correct
5
Assembly cost assigned to Titanium racquets	22000	=44000/(500+500)*500
Option D $22000 is correct