Managerial Accounting

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Chapter 7- Cost Volume Profit Analysis

1. In the coming year, Scuba Dive shop expects to sell 1000 scuba tanks. The unit contribution margin is expected to be $600, and fixed costs are expected to increase to $200,000.

Predict the Profit


Chapter 8-Variable Costing and The Measurement of ESG and Quality Costs

2. Roofing Manufacturing Co, produces a single product with the following information available.

Number of units produced annually 300,000
Variable cost per unit:
Direct Material, direct labor and
variable mfg. Overhead $ 50
selling and admin expenses $ 15
Fixed costs per year:
Mfg Overhead $ 275,000
Selling and admin expense $100,000

Unit Product Cost? Absorption costing Variable costing
Direct materials, direct labor, and
Variable mfg overhead $30 $30
Fixed mfg. Overhead ?? ?
Unit Product Cost ?

Chapter 9-Financial Planning & Analysis: The Master Budget

3. Yo-Yo Inc, is preparing budgets for the quarter ending December30th.

*Budgeted sales for the next five months are:

August….………………………………..80,000 units
September……………………………….90,000 units
October…………………………………..120,000 units
November………………………………..200,000 units
December………………………………..175,000 units

The selling price is $20.00 per unit

Chapter 10-Standard Costing and Analysis of Direct Costs

4. Appliance Inc, has the following direct material standard to produce one appliance:
3.5 pounds per appliance at $8.00 per pound
Last week 4,800 pounds of material were purchased and used to make 5,000 appliances. The material cost a total of $100,000.
1. what is the ACTUAL PRICE (AP) per pound for the material?

2. Appliance’s direct material variance (MPV) for the week was ?

3. The standard quantity of material that should have been used to produce 5,000 appliance’s is?

4. Appliance’s direct material quantity variance (MQV) for the week was ?


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