Question

Paolucci Corporation's relevant range of activity is 6,900 units to 14,500 units. When it produces and sells 10,700 units, its average costs per unit are as follows:

    Average
Cost per Unit
Direct materials   $   6.85     
Direct labor   $   3.75     
Variable manufacturing overhead   $   1.75     
Fixed manufacturing overhead   $   3.30     
Fixed selling expense   $   1.05     
Fixed administrative expense   $   0.75     
Sales commissions   $   1.00     
Variable administrative expense   $   0.65     

If 9,700 units are sold, the variable cost per unit sold is closest to:

Multiple Choice
$19.10
$12.35
$15.65
$14.00

question 2
Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

    Molding   Finishing   Total
Estimated total machine-hours (MHs)      3,250      1,750      5,000
Estimated total fixed manufacturing overhead cost   $   20,000   $   3,600   $   23,600
Estimated variable manufacturing overhead cost per MH   $   3.00   $   6.00        

During the most recent month, the company started and completed two jobs--Job A and Job M. There were no beginning inventories. Data concerning those two jobs follow:

    Job A   Job M
Direct materials   $   14,900   $   8,600
Direct labor cost   $   21,800   $   8,800
Molding machine-hours      1,250      2,000
Finishing machine-hours      1,250      500

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The total manufacturing cost assigned to Job M is closest to: (Round "Predetermined overhead rate" to 2 decimal places.)

Multiple Choice
$21,925
$8,800
$39,325
$8,600

question 3
Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,800 of direct materials, $6,966 of direct labor, and $10,216 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $20.40 per direct labor-hour.

During May, the following activity was recorded:

         
Raw materials (all direct materials):        
Beginning balance   $   9,500
Purchased during the month   $   39,000
Used in production   $   40,300
Labor:        
Direct labor-hours worked during the month      2,900
Direct labor cost incurred   $   25,510
Actual manufacturing overhead costs incurred   $   34,300
Inventories:        
Raw materials, May 30      ?
Work in process, May 30   $   17,197

Work in process inventory on May 30 contains $3,921 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.

The balance in the raw materials inventory account on May 30 was:

Multiple Choice

$8,200

$1,300

$29,500

$30,800

Answer 1