Clifford Company, who produces outdoor dog houses, reports the following cost data for July. Wood used to produce dog houses $132,000 Indirect materials used to manufacture the dog houses (glue, nails, etc.) 11,000 Depreciation on equipment used in the manufacturing process  59,000 Salary of the Accounts Receivable Clerk 37,000 Wages paid to the employees who assemble the dog houses 245,000 Marketing costs to promote the products in trade magazines 28,000 Salary of the manufacturing supervisor 77,000 Calculate each of the amounts below:

Which of the following statements is/are true: I: ABC costing assigns overhead from activity cost pools to products or services by means of cost drivers. II: Inaccurate product costing can lead to bad business decisions, such as over or under-pricing a product. III: Service companies, like a health care organization or a bank cannot benefit from using ABC to allocate overhead costs to the services they provide.  IV: Overhead costs are applied to products and services based on the actual amounts of what the total costs will be for an accounting period.   

Determine the cost of goods sold as of 3/31/25 based on the information below. Direct materials used                  $85,600 Direct labor                                                                 49,500 Manufacturing overhead applied (for March)                                    67,800 Actual manufacturing overhead incurred 69,500 Finished goods, 3/1/25                                            22,000 Finished goods, 3/31/25                                             27,700 Work in process, 3/1/25                                            9,080 Work in process, 3/31/25                                            7,700

Witcher Industries shares the following data: Actual Estimated Manufacturing Overhead Costs $1,250,000 $1,000,000 Direct Labor Costs 750,000 800,000 Direct Labor Hours 40,000 50,000 If Witcher uses a predetermined overhead rate based on direct labor cost, calculate the overhead applied to a job that incurred $10,000 direct labor. (Round all calculations to whole dollars)

Vandelay Industries reported the following results from the sale of 17,500 watches in December: Sales $875,000, variable costs $525,000, fixed costs $200,000, and net income $150,000. Assume that Vandelay increases the selling price of watches by 10% on January 1 (variable cost per unit and total fixed costs remain unchanged.) What will be the new contribution margin per unit, and how many watches will have to be sold in January to maintain the same level of net income?  

Which statement below is TRUE?

Initech produces wireless headphones, which it sells for $60 each. Each headphone costs $26 of variable costs to make. During July, 1,900 headsets were sold. Fixed costs for July were $14 per unit for a total of $26,600 for the month. How much does Wilson’s operating income increase in July for each $1,000 increase in revenue?

Val’s Flowers sells bouquets of flowers for $50 each.  After some analysis, Val has identified that each bouquet incurs $25 of variable costs and total fixed costs are $25,000/month.  What is Val’s margin of safety in dollars assuming monthly sales of 2,100 bouquets?

Define a new type called Rectangle that can be used for storing all the information necessary to be able to draw a rectangle at a particular x, y location of a particular width and height (all whole numbers). The x, y refer to the position of the upper left corner of the rectangle. Assume that x is 0 at the top and grows as it goes down. Assume that y is 0 on the left and grows as as it goes right. The user should be able to construct a Rectangle located at an x of 10, a y of 17, 100 wide and 50 tall by writing: Rectangle rect = {10, 17, 100, 50}. Write a function called contains that takes two pointers to Rectangles as parameters and returns true if the second rectangle is entirely contained inside the first and false otherwise. You can assume both passed in Rectangles will be valid. That means they will have x, y coordinates of 0 or greater and widths and heights of 0 or greater. Rectangle big = {10, 25, 100, 100}; Rectangle small = {30, 25, 50, 10}; bool fits = contains(&big, &small); After the above call fits would store true because the small’s left side starts after big’s (30 vs 10), small’s right side ends before big’s (80 vs 110), small’s top starts the same place as big’s (25 vs 25) and small’s bottom edge ends before big’s (35 vs 125) Rectangle bigish {10, 25, 50, 50}; Rectangle smallish {30, 25, 50, 10}; bool fits2 = contains(&bigish, &smallish); After the above call fits2 would store false because the left side of bigish occurs before the left side of smallish but the right side of bigish also occurs before the right side of smallish.

Badger’s, Inc. produces several products.  One of their products (Widget-A) costs $200/unit under their traditional cost system using direct labor as a cost driver to allocate overhead costs.  An analysis of the activities and their costs revealed that three cost drivers would be used under the new ABC system.  The new cost of the Widget-A was determined to be $150/unit.  Which of the following statements is true regarding this change in the cost: