For a company with diverse products, under costing overhead of a product will lead to product-cross -subsidization which means that:

Company X applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labor-hour. Company X presented the following information in May:

• Direct materials = $100000

• Direct labor (6000 hours at $12/hour) = $72000

• Indirect labor = $25000

• Plant facility rent = $36000

• Sales commission = $20000

For May, manufacturing overhead is:

Company X employs 4 designers and 6 accounts managers. Direct and indirect costs are applied on a professional labor-hour basis that includes both designers and account managers. Company X presented the following information:

• Indirect costs: $300000
• Annual salary of each designer: $90000
• Annual salary of each account manager: $60000
• Total professional hours: 15000

The following information is available for Company X:

• Units sold: 42000
• Contribution margin: $420000
• Income tax rate: 25%

How many units does Company X need to sell in order to increase the net income after taxes by $63000

The following information is available for Company X, with fixed costs at $640000:

Product A:

• Units sold: 11000
• Selling price: $100 /unit
• Variable costs: $40 /unit

Product B:

• Units sold: 2750
• Selling price: $200 /unit
• Variable costs: $120 /unit

Company X presents the following information:

• Cost of goods sold: $25000
• Finished goods inventory, January 1st: $12500
• Finished goods inventory, January 31st: $5000
• Work in progress inventory, January 1st: $7500
• Work in progress inventory, January 31st: $3750

Based on this information, determine the total amount of manufacturing costs for the period.

Which of the following is/are TRUE when sales decrease in a specific relevant range?

a. The fixed cost per unit increases

b. Total variable cost decreases

c. Total fixed costs remain unchanged

d. The variable cost per unit increases

The following information is available for Company X:

• Sales: $185000

• Variable costs: $74000

• Fixed costs per unit: $30000

If sales increase by $37000, the additional operating income is: