This paperwork ACC 561 Week 4 IndividualWileyPlus Exercise BE18 1, BE18 7, BE18 11 includes answers to these exercises:
1) Brief Exercise BE18-1
Monthly production costs in Pesavento Company for two levels of production are as follows.
Cost 3,000 units 6,000 units
Indirect labor $10,000 $20,000
Supervisory salaries 5,000 5,000
Maintenance 4,000 7,000
Indicate which costs are variable, fixed, and mixed.
Indirect labor Variable cost
Supervisory salaries Fixed cost
Maintenance Mixed cost
2) Brief Exercise BE18-7
Bruno Manufacturing Inc. has sales of $2,200,000 for the first quarter of 2010. In making the sales, the company incurred the following costs and expenses.
Variable Fixed
Cost of goods sold $920,000 $440,000
Selling expenses 70,000 45,000
Administrative expenses 86,000 98,000
Complete the CVP income statement for the quarter ended March 31, 2010.
BRUNO MANUFACTURING INC.
CVP Income Statement
For the Quarter Ended March 31, 2010
Sales $2,200,000
Variable costs 1,076,000
Contribution Margin 1,124,000
Fixed costs 583,000
Net income $541,000
3) Brief Exercise BE18-11
For Dousmann Company actual sales are $1,200,000 and break-even sales are $840,000. Compute the following (a) the margin of safety in dollars and (b) the margin of safety ratio.
Margin of safety in dollars $360,000
Margin of safety ratio 30%
