Big Kahuna Burger makes fast food style hamburgers. The selling price is $12 per burger and the variable costs are $5.50 per burger. Fixed costs per month are $2,275. If Big Kahuna sells 15 more units beyond breakeven, how much does profit increase as a result?

If manufacturing overhead is underapplied:

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 $30,000/month.  What is Val’s margin of safety in dollars assuming monthly sales of 2,100 bouquets?

Don Quixote Consulting shares the following information: Estimated overhead $1,200,000 Actual overhead 1,292,000 Estimated consulting hours 50,000 Actual consulting hours 45,500 Assuming overhead is applied using a predetermined overhead rate based on consulting hours, overhead for the year will be:   

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?