Question 2
For Turgo Company, variable costs are 63% of sales, and fixed costs are $180,300. Management’s net income goal is $60,903.
Compute the required sales in dollars needed to achieve management’s target net income of $60,903.
A. Required sales: $
Question 5
**Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.
**Polk Company sells the fishing lures for $27.00. During 2012, the company sold 80,900 lures and produced 95,200 lures.
Variable Cost per Unit
Direct materials $8.10
Direct labor $2.65
Variable manufacturing overhead $6.21
Variable selling and administrative expenses $4.21
Fixed Costs per Year
Fixed manufacturing overhead $254,184
Fixed selling and administrative expenses $259,308
Assuming the company uses variable costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)
A:
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Manufacturing cost per unit $
Assuming the company uses absorption costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)
A:
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Manufacturing cost per unit: $
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Prepare an absorption costing income statement for 2012.
POLK COMPANY
Income Statement
For the Year Ended December 31, 2012
Absorption Costing
Question 7
Gundy Company expects to produce 1,318,080 units of Product XX in 2012. Monthly production is expected to range from 78,450 to 124,470 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $8, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $2.
Prepare a flexible manufacturing budget for the relevant range value using 23,010 unit increments. (List variable costs before fixed costs.)
GUNDY COMPANY
Monthly Flexible Manufacturing Budget
For the Year 2012
Help needed from genuisy_2006 only!
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