Reference no: EM13333243

Question  1

At a break-even point of 400 units sold, variable expenses were $4,000, and fixed expenses were $2,000. What will the 401st unit sold contribute to profit?

Question 2

Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:

Production Cost Data
Direct materials	$153,000
Direct labor	$110,500
Variable manufacturing overhead	$204,000
Fixed manufacturing overhead	$255,000

Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost.

Under absorption costing, the carrying value on the balance sheet of the ending inventory for the year would be

Question 3

Gargymal Company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the past five months of operations.

	Machine Hours	Electrical Cost
August	1,000	$1,620
September	900	$1,510
October	1,500	$1,870
November	2,000	$1,950
December	1,300	$1,730

Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to which of the following?