Company X shows a large Margin of Safety. That indicates:

Company X produces and sells a single product with a positive contribution margin. If the selling price and the variable cost per unit both increase 5% and fixed costs do not change, what is the effect on the contribution margin per unit ($) and the contribution margin as % of sales?

Company X presented the following information:

• Estimated manufacturing overhead costs = $2380000
• Estimated direct labor hours = 340000
• Estimated direct labor cost = $520000
• Actual direct labor hours = 351945
• Actual manufacturing overhead costs = $2357000

Manufacturing overhead is allocated on the basis of

direct labor hours.

Which of the following sentences is FALSE?

Company X's managers have decided to revise their current assignment of overhead

costs to reflect the following ABC cost information:

Activities Demanded

Under the revised ABC system,

overhead costs per unit for the Sweatshirts will be: (Round the final answer to the nearest cent)

If the contribution margin ratio is 0.25, targeted operating income is $42196, and targeted sales volume in dollars is $250000, then total fixed costs are:

A local accounting firm employs 20 full-time professionals. The budgeted annual compensation per employee is $41164. The average chargeable time is 500 hours per client annually. All professional labor costs are included in a single direct-cost category and are allocated to jobs on a per-hour basis.

Other costs are included in a single indirect-cost pool, allocated according to professional labor-hours. Budgeted indirect costs for the year are $787500, and the firm expects to have 90 clients during the coming year.

If ten clients are lost and the workforce stays at 20 employees, then the direct labor cost rate per hour is:

Company Ex sells only two products, Product A and Product B.

Company Ex incurred fixed manufacturing costs of $16000 during 20x4. Other information for 20x4 includes: