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Adams Enterprises makes a variety of products that it sells to other businesses. The company’s activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:   Activity Cost Pool Activity Measure Activity Rate Supporting assembly Direct labor hours $3.20 per hour Processing batches Number of batches $103.80 per batch Processing orders Number of orders $98.65 per order Serving customers Number of customers $1,488.00 per customer   The cost of serving customers, $1,488.00 per customer, is the cost of serving a customer for one year. Yousif Corporation buys only one of the company’s products, which Adams Enterprises sells for $25.00 per unit. Last year Yousif Corporation ordered a total of 900 units of this product in 3 orders. To fill the orders, 11 batches were required. The direct materials cost is $8.20 per unit and the direct labor cost is $7.65 per unit. Each unit requires 0.40 DLHs. According to the ABC system, the total cost of the activity “Supporting assembly” for this customer this past year was:  

Braston Corporation is a small wholesaler of gourmet food products. Data regarding the store’s operations follow:· Sales are budgeted at $350,000 for November, $330,000 for December, and $340,000 for January.· Collections are expected to be 70% in the month of sale, 26% in the month following the sale, and 4% uncollectible.· The cost of goods sold is 70% of sales.· The company purchases 50% of its merchandise in the month prior to the month of sale and 50% in the month of sale. Payment for merchandise is made in the month following the purchase.· Other monthly expenses to be paid in cash are $20,100.· Monthly depreciation is $22,000.· Ignore taxes.  Total December cash disbursements would be:

Diltex Farm Supply is located in a small town in the rural west. Data regarding the store’s operations follow:· Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January.· Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible.· The cost of goods sold is 65% of sales.· The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month’s cost of goods sold. Payment for merchandise is made in the month following the purchase. The inventory balance at the end of October was $71,500.· Other monthly expenses to be paid in cash are $22,500.· Monthly depreciation is $19,000.· Ignore taxes. Expected cash collections in December are:

New product research is an example of (an):

If company A has a higher degree of operating leverage than company B, then:

Simmons Corporation, a manufacturing company, has provided the following financial data for April:   Sales $340,000 Variable production expense $43,000 Variable selling expense $21,000 Variable administrative expense $33,000 Fixed production expense $62,000 Fixed selling expense $67,000 Fixed administrative expense $88,000   The firm had no beginning or ending inventories. The contribution margin for April was:

A company increased the selling price for its product from $5 to $6 per unit when total fixed expenses and variable expense per unit remained unchanged. How would these changes affect the break-even point?

A company has provided the following data:   Sales 3,000 Units Sales price $70 Per unit Variable cost $50 Per unit Fixed cost $25,000 Total If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net operating income will:

Caldwell Company has provided the following inventory balances and manufacturing cost data for the month of January:   Inventories January 1 January 31 Direct materials $30,000 $40,000 Work in process $15,000 $20,000 Finished goods $65,000 $50,000   Month of January   Cost of goods manufactured $515,000 Manufacturing overhead applied $150,000 Direct materials used $190,000 Actual manufacturing overhead $144,000   Under Caldwell’s job-order costing system, any over or under-applied overhead is closed  to the Cost of Goods Sold account at the end of the calendar year (i.e., December 31).   How much direct labor cost was incurred during January?

Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $16,200. An additional 84,000 units were started into production during the month. A total of 85,000 units were completed and transferred out during the period. There were 17,000 units in the ending work in process inventory of the Welding Department that were 70% complete with respect to conversion costs. A total of $836,880 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to: