COST MANAGEMENT LOOSELEAF CUSTOM
COST MANAGEMENT LOOSELEAF CUSTOM
8th Edition
ISBN: 9781307659177
Author: BLOCHER
Publisher: MCG/CREATE
Question
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Chapter 15, Problem 29E

1.

To determine

Compute the variances for P Factory.

2.

To determine

Pass necessary journal entries in the books of V Factory.

3.

To determine

Provide information on the factory’s operation for the month of March with respect to variable factory overhead cost.

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GEM Company has a unit selling price of $790, variable costs per unit of $545, and fixed costs of $285,000. Compute the break-even point in units using the mathematical equation and (b) the unit contribution margin.
Armstrong Industries has an employee earning $7,200 per month. The FICA tax rate for Social Security is 6.2%, and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. The employee has $275 in federal income taxes withheld. The employee also has voluntary deductions for health insurance of $210 and contributes $120 to a retirement plan each month. What is the employee’s net pay for the month of January?
Net income for the year?
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