Acme Company makes and sells a single product called a widget. Acme’s income statement for the current month is as follows: Each widget sells for $150. Variable selling expenses are $8 per widget, and the remainder of the selling expenses are fixed. Variable administrative expenses are 7% of sales revenue, and the remainder of the administrative expenses are fixed. Assume “Y” equals the total selling and administrative expenses and “X” equals the total number of widgets sold. What is the mixed cost formula for total selling and administrative expenses?

Before making its closing entries at the end of the year, Acme Company’s manufacturing overhead account has a debit balance of $29,500. During the year, the total amount of manufacturing overhead applied to jobs is $400,000, of which $280,000 is included in cost of goods sold, $88,000 is included in ending finished goods inventory, and $32,000 is included in ending work in process inventory. Assuming the amount in the manufacturing overhead account is material, the entry to correct the overapplied or underapplied manufacturing overhead will include a:

Before making its closing entries at the end of the year, Acme Company’s manufacturing overhead account has a debit balance of $26,500. During the year, the total amount of manufacturing overhead applied to jobs is $400,000, of which $280,000 is included in cost of goods sold, $88,000 is included in ending finished goods inventory, and $32,000 is included in ending work in process inventory. Assuming the amount in the manufacturing overhead account is material, the entry to correct the overapplied or underapplied manufacturing overhead will include a:

Acme Company commenced operations during the current month and uses process costing. In the first processing department, all direct materials are added at the beginning of the manufacturing process and conversion costs are incurred evenly throughout the manufacturing process. During its first month of operations, the first processing department completed and transferred out 35,000 units and the total equivalent units of production was 50,000 for direct materials and 45,500 for conversion costs. What is the percentage of completion with respect to conversion costs for the units in the first processing department’s ending work in process inventory?

Acme Company has two manufacturing departments, P and Q, and applies manufacturing overhead using departmental rates based on direct labor hours (DLHs). Here are estimated overhead data for the current year: During the current month, Acme starts and completes Job 71. Direct materials used are $28,800 and direct labor used is $43,000. Job 71 uses 280 DLHs in Department P and 640 DLHs in Department Q. Acme uses the cost-plus pricing method to set selling prices. The markup is 60% of total manufacturing costs. What is Acme’s selling price for Job 71?

Acme Company uses process costing and has three sequential processing departments: Departments A, B, and C. During the current month, the balance of Department B’s beginning work in process (WIP) inventory is $14,800, which includes $7,100 of transferred in costs. During the month, direct material costs added are $15,200, conversion costs incurred are $19,300, and transferred-in costs are $31,500. The balance of Department B’s ending WIP inventory is $16,100. What is the journal entry to record the transfer of units from Department A to Department B during the current month?

Acme Company makes the following estimates for the upcoming year: total annual manufacturing overhead costs of $810,000, total annual direct labor hours of 25,000 hours, and total annual machine hours of 30,000 hours. Acme’s direct labor costs are $24 per hour. Which of the following overhead rates accurately reflects Acme’s expected overhead costs? 

Acme Company’s direct labor costs are 45% of its total conversion costs. During the current year, Acme’s direct material costs are $225,000 and its manufacturing overhead costs are $170,500. What are the company’s direct labor costs? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

The process of reasoning involves:

Acme Company makes the following estimates for the upcoming year: total annual manufacturing overhead costs of $810,000, total annual direct labor hours of 25,000 hours, and total annual machine hours of 40,000 hours. Acme’s direct labor costs are $36 per hour. Which of the following overhead rates accurately reflects Acme’s expected overhead costs?