# 1) A company manufactures and sells a product for \$720 per unit. The company’s fixed costs are \$55,4

1) A company manufactures and sells a product for \$720 per unit. The company’s fixed costs are \$55,400, and its variable costs are \$576 per unit. The company’s break-even point in dollars is: \$277,000 \$332,400 \$207,750 \$1,847 \$69,250

2) a firm expects to sell 25,900 units of its product at \$20 per unit. Pretax income is predicted to be \$69,900. If the variable costs per unit are \$15, total fixed costs must be: \$318,600 \$518,000 \$59,600 \$129,500 \$448,100

3) Gage Company reports the following information for its first year of operations:      Unit produced this year 6,200 units   Unit sold this year 5,700 units   Direct materials \$16 unit   Direct labor \$24 unit   Variable overhead ? in total   Fixed overhead \$49,600 in total

If the company’s cost per unit of finished goods using variable costing is \$63, what is total variable overhead?
\$93,000 \$131,100 \$142,600 \$85,500 \$49,590

4) Romtech Company sold 33,000 units of its product at a price of \$1,000 per unit. Total variable cost per unit is \$525, consisting of \$504 in variable production cost and \$21 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing. \$15,675,000 \$16,368,000 \$32,307,000 \$33,000,000 \$17,325,000 5) Sea Company reports the following information regarding its production cost.

Units produced 53,000 units   Direct labor \$ 44.50 per unit   Direct materials \$ 32.75 per unit   Variable overhead

\$ 21.75 per unit     Fixed overhead

\$ 331,250 in total

Compute production cost per unit under variable costing. \$44.50 \$32.75 \$105.25 \$99.00 \$77.25

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