Question

5 Jeanlouis, Inc., manufactures and sells two products: ProductD0 and Product D5. The company has an activity-based costing systemwith the following activity cost pools, activity measures, andexpected activity:

		Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product D0	Product D5	Total
Labor-related	DLHs	$313,743	3,600	3,300	6,900
Production orders	orders	70,264	300	500	800
General factory	MHs	253,555	4,300	4,200	8,500
		$637,562

The total overhead applied to Product D5 under activity-basedcosting is closest to:

$319,252

$125,286

$304,920

$273,240

6 Ofarrell Corporation, a company that produces and sells asingle product, has provided its contribution format incomestatement for March.

Sales (6,800 units)	$401,200
Variable expenses	265,200
Contribution margin	136,000
Fixed expenses	103,500
Net operating income	$32,500

If the company sells 6,700 units, its net operating incomeshould be closest to:

$31,979

$28,000

$30,500

$32,500

7

Dybala Corporation's produces and sells a single product. Dataconcerning that product appear below:

	Per Unit	Percent of Sales
Selling price	$170	100%
Variable expenses	85	50%
Contribution margin	$ 85	50%

The company is currently selling 5,400 units per month. Fixedexpenses are $402,200 per month. The marketing manager believesthat a $6,400 increase in the monthly advertising budget wouldresult in a 150 unit increase in monthly sales. What should be theoverall effect on the company's monthly net operating income ofthis change?

Decrease of $6,400

Increase of $6,350

Decrease of $6,350

Increase of $12,750

8 Data concerning Wang Corporation's single product appearbelow: (Do not round your intermediatecalculations.)

Selling price per unit	$	210.00
Variable expense per unit	$	73.50
Fixed expense per month	$	138,450

The break-even in monthly dollar sales is closest to:

$213,000

$287,550

$138,450

$426,000