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Deli Products produces two products, X and Y, in a single process. In 2011, the joint costs of this process were $25,000. In addition, 4,000 units of X and 6,000 units of Y were produced and sold. Separable processing costs beyond the split-off point were: X – $10,000; Y – $20,000. X sells for $10.00 per unit; Y sells for $7.50 per unit. ​ What is the gross profit of product Y assuming the physical units method is used?

Allocation is not necessary when using JIT manufacturing.

A flexible budget compares actual costs to budgeted costs.

Control can be defined as

Beginning inventory consisted of 10,000 units (20 percent converted) and ending inventory consisted of 20,000 units (40 percent converted). In addition, 60,000 units were started during the period. How many equivalent units for conversion costs were produced using the weighted average method?

Diane’s Pottery Manufacturing Company has two support departments, Maintenance Department and Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of $30,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $4,500 are allocated on the basis of number of employees. The direct costs of Departments X and Y are $9,000 and $15,000, respectively. Data on standard service hours and number of employees are as follows:     Maint. Person. Dept. Dept.   Dept. Dept. X Y Standard service hours used 100  75 600 300 Number of employees  50 100 150 150 Direct labor hours 125 125 500 250 ​ What are the total overhead costs associated with Department Y after allocating the Maintenance and Personnel Departments using the direct method?

Alpha Corp. prices its products at full cost plus 25 percent. The company has two support departments and two producing departments. Budgeted costs and normal activity levels are as follows:   ​ Support Departments Producing Departments ​ S1 S2 P1 P2 Overhead costs $15,000 $27,000 $250,000 $200,000 Square feet       900     1,100       4,000       8,000 Number of employees         12         28          100            80 Direct labor hours – –       9,000     10,000 Machine hours – –     12,000      8,000 ​ S1 Department’s costs are allocated based on square feet, and S2 Department’s costs are allocated based on number of employees. ​ P1 Department uses direct labor hours to assign overhead costs to products and P2 Department uses machine hours. ​ Alpha manufactures Product X, each unit of which requires 5 direct labor hours in P1 Department and no time in P2 Department. Direct materials per unit of Product X cost $200, and direct labor is $110 per unit. ​ Determine the selling price of Product X, if the direct method of allocation is used and the company follows its usual pricing policy.

Assuming all other things are the same, if there was an increase in the break-even point, contribution margin per unit must have:

Assuming all other things are equal, if there was a decrease in the break-even point, fixed costs must have:

A static budget is one developed for a single level of activity.