39. Calabria Enterprise's current sales price per unit is $26 and the current variable cost per unit is $18. Fixed costs are $40,000. If the sales price increases by $2 and all the other costs remain unchanged, the break-even point in units will: A. increase by 4,000 units B. increase by 1,000 units C. decrease by 1,000 units D. remain unchanged 40. The Battaglia Co. produces lounge chairs. At a budgeted amount of 10,000 lounge chairs the manufacturing overhead is $50,000 variable and $135,000 fixed. If Battaglia had actual variable manufacturing overhead of $60,500 and actual fixed manufacturing overhead of $125,000 for 11,000 lounge chairs produced, what would the spending (flexible budget) variance be for the total manufacturing overhead? A. $500 unfavorable B. $4,500 unfavorable C. $4,500 favorable D. $500 favorable 11 4. Costanza Inc., a stationary reseller, forecasted its sales for the next three months as follows: January 8 ,000 boxes, February 10,000 boxes, March 14,000 boxes. The unit cost of each box is $45. Selling and administrative expenses are budgeted to be $20,000 per month plus $8 per unit sold. What are budgeted selling and administrative expenses for February? A. $20,000 B. $450,000 C. $100,000 D. $132,000
39. Calabria Enterprise's current sales price per unit is $26 and the current variable cost per unit is $18. Fixed costs are $40,000. If the sales price increases by $2 and all the other costs remain unchanged, the break-even point in units will: A. increase by 4,000 units B. increase by 1,000 units C. decrease by 1,000 units D. remain unchanged 40. The Battaglia Co. produces lounge chairs. At a budgeted amount of 10,000 lounge chairs the manufacturing overhead is $50,000 variable and $135,000 fixed. If Battaglia had actual variable manufacturing overhead of $60,500 and actual fixed manufacturing overhead of $125,000 for 11,000 lounge chairs produced, what would the spending (flexible budget) variance be for the total manufacturing overhead? A. $500 unfavorable B. $4,500 unfavorable C. $4,500 favorable D. $500 favorable 11 4. Costanza Inc., a stationary reseller, forecasted its sales for the next three months as follows: January 8 ,000 boxes, February 10,000 boxes, March 14,000 boxes. The unit cost of each box is $45. Selling and administrative expenses are budgeted to be $20,000 per month plus $8 per unit sold. What are budgeted selling and administrative expenses for February? A. $20,000 B. $450,000 C. $100,000 D. $132,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:39. Calabria Enterprise's current sales price per unit is $26 and the current variable cost per unit is $18.
Fixed costs are $40,000. If the sales price increases by $2 and all the other costs remain unchanged, the
break-even point in units will:
A. increase by 4,000 units
B. increase by 1,000 units
C. decrease by 1,000 units
D. remain unchanged
40. The Battaglia Co. produces lounge chairs. At a budgeted amount of 10,000 lounge chairs the
manufacturing overhead is $50,000 variable and $135,000 fixed. If Battaglia had actual variable
manufacturing overhead of $60,500 and actual fixed manufacturing overhead of $125,000 for 11,000
lounge chairs produced, what would the spending (flexible budget) variance be for the total
manufacturing overhead?
A. $500 unfavorable
B. $4,500 unfavorable
C. $4,500 favorable
D. $500 favorable
11
Transcribed Image Text:4. Costanza Inc., a stationary reseller, forecasted its sales for the next three months as follows: January 8
,000 boxes, February 10,000 boxes, March 14,000 boxes. The unit cost of each box is $45. Selling and
administrative expenses are budgeted to be $20,000 per month plus $8 per unit sold. What are
budgeted selling and administrative expenses for February?
A. $20,000
B. $450,000
C. $100,000
D. $132,000
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