1.) For Bob Company, variable costs are 61% of sales, and fixed costs are $171,000. Management’s net income goal is $91,899.

Compute the required sales in dollars needed to achieve management’s target net income of $91,899.

2.) Bob 2 Company produces basketballs. It incurred the following costs during the year.

Direct materials $14,418  

Direct labor $25,589  

Fixed manufacturing overhead $9,540

Variable manufacturing overhead $31,998

Selling costs $21,235  

What are the total product costs for the company under variable costing?

Total product costs $  

3.) Bob 3 Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.

Variable Cost per Unit  

Direct materials $8.10  

Direct labor $2.65  

Variable manufacturing overhead $6.21

Variable selling and administrative expenses $4.21

Fixed Costs per Year  

Fixed manufacturing overhead $253,650

Fixed selling and administrative expenses $259,308

Bob 3 Company sells the fishing lures for $27.00. During 2012, the company sold 81,000 lures and produced 95,000 lures.

Assuming the company uses variable costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)

4. For the quarter ended March 31, 2012, Bob 4 Company accumulates the following sales data for its product, Garden-Tools: $315,000 budget; $337,500 actual.

Prepare a static budget report for the quarter.

Bob 4 COMPANY  

Sales Budget Report  

For the Quarter Ended March 31, 2012

Product Line Budget Actual Difference

Garden-Tools   

5. Bob 5 company expects to produce 1,306,680 units of Product XX in 2012. Monthly production is expected to range from 74,810 to 112,910 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $8, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $1.

Prepare a flexible manufacturing budget for the relevant range value using 19,050 unit increments. (List variable costs before fixed costs.)

BOB 5 COMPANY  

Monthly Flexible Manufacturing Budget

For the Year 2012  

 

 

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