1.) For Bob Company, variable costs are 61% of sales, and fixed costs are $171,000. Management’s net income goal is $91,899.
Compute the required sales in dollars needed to achieve management’s target net income of $91,899.
2.) Bob 2 Company produces basketballs. It incurred the following costs during the year.
Direct materials $14,418
Direct labor $25,589
Fixed manufacturing overhead $9,540
Variable manufacturing overhead $31,998
Selling costs $21,235
What are the total product costs for the company under variable costing?
Total product costs $
3.) Bob 3 Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.
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 $253,650
Fixed selling and administrative expenses $259,308
Bob 3 Company sells the fishing lures for $27.00. During 2012, the company sold 81,000 lures and produced 95,000 lures.
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.)
4. For the quarter ended March 31, 2012, Bob 4 Company accumulates the following sales data for its product, Garden-Tools: $315,000 budget; $337,500 actual.
Prepare a static budget report for the quarter.
Bob 4 COMPANY
Sales Budget Report
For the Quarter Ended March 31, 2012
Product Line Budget Actual Difference
Garden-Tools
5. Bob 5 company expects to produce 1,306,680 units of Product XX in 2012. Monthly production is expected to range from 74,810 to 112,910 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 $1.
Prepare a flexible manufacturing budget for the relevant range value using 19,050 unit increments. (List variable costs before fixed costs.)
BOB 5 COMPANY
Monthly Flexible Manufacturing Budget
For the Year 2012
