Reference no: EM132536756

Question 1: Kiddie Company makes jungle gyms and tree houses for children. For jungle gyms, the price is $120 and variable expenses are $90 per unit. For tree houses, the price is $200 and variable expenses are $100. Total fixed expenses are $880,000. Last year, Kiddie sold 1,600 gyms and 400 tree houses. How many jungle gyms need to be sold at break-even?

a) 1,600

b) 4,000

c) 16,500

d) 16,000

Question 2: Using the information from Question 1. How many tree houses need to be sold at break-even?

a) 400

b) 4,000

c) 40,000

d) 16,000

Question 3: The following information pertains to Wilson Company for the year:

Estimated overhead $320,000

Estimated machine hours 40,000

Actual overhead $337,500

Actual machine hours 45,000

Using machine hours as the basis, calculate the pre-determined overhead rate.

a) $8/machine hour

b) $7.50/machine hour

c) $7.11/machine hour

d)$8.44/machine hour

Question 4: Using the information from Question 3. What is the total applied overhead?

a) $360,000

b) $300,000

c) $284,400

b) $379,800

Question 5: Using the information from Question 3. What is the overhead variance?

a) $37,500 under-applied

b) $22,500 over-applied

c) $22,500 under-applied

d) $17,500 under-applied