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Freetown Corporation incurred fixed manufacturing costs of $34,000 during 2017. Other information for 2017 includes:         The budgeted denominator level is 2,000 units.         Units produced total 1,800 units.         Units sold total 1,300 units.         Beginning inventory was zero.   The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.   Operating income using absorption costing will be ________ than operating income if using variable costing. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

Use the following information for the next three questions. Taylor Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2017: Budgeted manufacturing overhead costs              $3,800,000 Budgeted machine-hours                                           200,000 Actual manufacturing overhead costs                  $3,660,000 Actual machine-hours                                               196,000 What is the budgeted manufacturing overhead rate?    

Decide which of the  properties of a commutative group (closure, identity, inverse, associative, commutative) hold for the given system:   

Excellent Manufacturers Inc.  has a current production level of 20,000 units per month. Unit costs at this level are:   Direct materials                                      $0.26 Direct labor                                               0.40 Variable overhead                                    0.16 Fixed overhead                                         0.21 Marketing – fixed                                      0.25 Marketing/distribution – variable            0.42   Current monthly sales are 18,000 units. Jax Company has contacted Excellent about purchasing 1,550 units at $2.00 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Ratzlaff Company’s change in operating profits if the special order is accepted?

Which of the following is not true with regards to relevant costs and relevant revenues?

When production is less than sales, operating income will be the same regardless of whether variable cost or absorption costing is used.

Product-cost cross-subsidization  means that:

As product diversity and indirect costs increase, it is usually best to switch away from a broad averaging system to an activity-based cost system.

Extreme Manufacturing Company provides the following ABC costing information:           Activities                                          Total Costs                Activity-cost drivers         Account inquiry                               $750,000                           15,000 hours         Account billing                                 $250,000                       5,000,000 lines         Account verification accounts       $173,250                     70,000 accounts         Correspondence letters                    $42,000                            7,000 letters                Total costs                              $1,215,250                                              The above activities are used by Departments A and B as follows:                                                                            Department A                       Department B         Account inquiry hours                              2,000 hours                           3,500 hours         Account billing lines                               900,000 lines                        750,000 lines         Account verification accounts            9,000 accounts                     7,000 accounts         Correspondence letters                          1,200  letters                         1,600 letters   How much of the total costs will be assigned to Department B?

Franklin Inc. manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for June 2018:                  Direct materials                                                         $170,000                Direct labor (4,600 hours @ $10/hour)                       46,000                Indirect labor                                                                  17,000                Plant facility rent                                                            34,000                Depreciation on plant machinery and equipment      24,500                Sales commissions                                                         33,000                Administrative expenses                                               28,000   For June 2018, manufacturing overhead is ________.