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    Contabilidad M2

    Uploaded by

    Azin Rostami
    - Flesch Corporation produces two products, C90B and Y45E, with different sales and variable expenses in the most recent month - If sales were shifted toward the higher contribution margin product C90B while keeping total sales constant, the company's break-even point would decrease - A higher contribution margin means fixed costs are covered by fewer total units sold

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    Contabilidad M2

    Uploaded by

    Azin Rostami
    65 views6 pages
    - Flesch Corporation produces two products, C90B and Y45E, with different sales and variable expenses in the most recent month - If sales were shifted toward the higher contribution margin product C90B while keeping total sales constant, the company's break-even point would decrease - A higher contribution margin means fixed costs are covered by fewer total units sold

    Original Title

    CONTABILIDAD M2

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    - Flesch Corporation produces two products, C90B and Y45E, with different sales and variable expenses in the most recent month - If sales were shifted toward the higher contribution margin product C90B while keeping total sales constant, the company's break-even point would decrease - A higher contribution margin means fixed costs are covered by fewer total units sold

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    65 views6 pages

    Contabilidad M2

    Uploaded by

    Azin Rostami
    - Flesch Corporation produces two products, C90B and Y45E, with different sales and variable expenses in the most recent month - If sales were shifted toward the higher contribution margin product C90B while keeping total sales constant, the company's break-even point would decrease - A higher contribution margin means fixed costs are covered by fewer total units sold

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    MODULE 2 - QUIZ

    Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of
    $36,000 and variable expenses of $10,800. Product Y45E had sales of $27,280 and variable expenses of $12,276.
    The fixed expenses of the entire company were $17,300. If the sales mix were to shift toward Product C90B with
    total dollar sales remaining constant, the overall break-even point for the entire company:

    Since Product C90B has a higher contribution margin ratio, a shift in sales to that product would decrease the
    break-even point of the entire company.

    Ferkil Corporation manufacturers a single product that has a selling price of $20.00 per unit. Fixed expenses
    total $42,000 per year, and the company must sell 6,000 units to break even. If the company has a target profit
    of $14,000, sales in units must be:
    Giannini Inc., which produces and sells a single product, has provided the following contribution format income
    statement for March:

    Required:
    Redo the company's contribution format income statement assuming that the company sells 5,200 units. (Do
    not round intermediate calculations.)

    Whirly Corporation’s contribution format income statement for the most recent month is shown below:

    Required:
    1. What would be the revised net operating income per month if the sales volume increases by 50 units?
    2. What would be the revised net operating income per month if the sales volume decreases by 50 units?
    3. What would be the revised net operating income per month if the sales volume is 7,900 units?
    MODULE 2 - PRACTICE QUESTIONS
    Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the
    following estimates:

    During the year, Job 550 was started and completed. The following information is available with respect to this
    job:

    Required:
    (Round your intermediate calculations to 2 decimal places. Round your Predetermined Overhead Rate answers
    to 2 decimal places and all other answers to the nearest whole dollar.)

    1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours
    as the allocation base. Under this approach:
    a. Compute the plantwide predetermined overhead rate.
    EXPLANATION
    The estimated total overhead cost is computed as follows:

    Y = $784,000 + ($2.00 per DLH)(140,000 DLHs)

    The predetermined overhead rate is computed as follows:


    b. Compute the total manufacturing cost of Job 550.

    EXPLANATION
    Total manufacturing cost assigned to Job 550:

    c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it
    establish for Job 550?

    EXPLANATION
    The selling price for Job 550 is computed as follows:

    2. Assume that Landen’s controller believes that machine-hours is a better allocation base than direct
    labor-hours. Under this approach:

    a. Compute the plantwide predetermined overhead rate.


    EXPLANATION
    The estimated total overhead cost is computed as follows:

    Y = $784,000 + ($4.00 per MH)(70,000 MHs)

    The predetermined overhead rate is computed as follows:


    b. Compute the total manufacturing cost of Job 550.

    EXPLANATION
    Total manufacturing cost assigned to Job 550:

    c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it
    establish for Job 550?

    EXPLANATION
    The selling price for Job 550 is computed as follows:

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