Company X is analysing a special order placed by a new customer. The company wants to attract this customer offering a very low price. It is known that this is a one-off purchase and that the selling price will not impact the base business. The following information is available:

• Variable cost: $9 per unit

• Contribution margin for the second best use of capacity: $5 per unit

Company X uses a process cost system and computes cost

using the weighted average method. In order to compute EUP, which of the following

must be reasonably estimated?

• Unit sales: Actual 4119 units; Master Budget 6078 units

• Sales revenue: Actual $ 222898; Master Budget $ 337947
• Variable costs: Actual $ 143240; Master Budget $ 199777
• Fixed costs: Actual $ 357896; Master Budget $ 348963

The sales price variance for the period is (favorable +; unfavorable -):

Company X presented the following information: 

Company X uses a process costing system and

computes cost using the weighted average (

Company X manufactures and sells a single product. When analysing last month's results the controller found an unfavourable price variance regarding material A used in the process.

This variance means __________

Company X manufactures and sells a single product (product A). When analysing the possibility of acquiring Product A from an external company, company X concluded that this decision would reduce the operating income by $24777.

Which of the following is TRUE?

Company X uses a process cost system and computes costs using the weighted average (no spoilage

). The beginning

work-in-process inventory cost was $16100. During the current period, $60000 of manufacturing cost were added. If Company X’s ending work-in-process inventory

was valued at $15000, then cost of goods transferred must have been:

Company X manufactures and sells a single product A. The following information is available:

• Direct materials $ 1,22
• Direct labour (variable) $ 5,91
• Variable manufacturing overhead $ 5,89
• Variable marketing cost $ 4,47
• Fixed manufacturing cost $ 2.18

• Fixed marketing cost $ 2.32

Company X can outsource product A from an external company, at the same quality. In this scenario, the marketing fixed costs will remain unchanged, however if product A is outsourced there will be a reduction of 30% in the variable marketing costs. The fixed manufacturing costs refer to the manufacturing facilities that will be idle if product A is outsourced.

What is the maximum price that Company X is willing to pay for Product A without damaging the company's operating income?

• Units sold: 4785 Actual; 6633 Budget
• Vendas totais: $ 205486 Actual; $ 330903 Budget
• Contribution margin: $ 63034 Actual; $ 142520 Budget
• Fixed costs: $ 112472 Actual; $ 85479 Budget

The sales volume variance for the period was (favourable +; unfavourable -)