Homework If your company follows the principle of management by exception, which of the following departures from the budget would most likely be investigated? Rent ($100). Labor ($800). Water ($500). Depreciation ($2,000). Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: Materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. How much would Shula’s profit increase if 10 more dinners were sold? $82.00 $140.
Homework If your company follows the principle of management by exception, which of the following departures from the budget would most likely be investigated? ?Rent ($100).?? ?Labor ($800).?? ?Water ($500).?? ?Depreciation ($2,000).??Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: Materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. How much would Shula’s profit increase if 10 more dinners were sold? ?$82.00?? ?$140.00?? ?$62.60?? ?$58.00????Paradise Pottery had the following costs in May when production is 800 ceramic pots: materials, $8,700; labor (variable), $2,900; depreciation, $1,100; rent, $900; and other fixed costs, $1,500. If production changes to 850 units, which will stay the same? ?total cost per unit?? ?total variable cost?? ?fixed cost per unit?? ?variable cost per unit??Raron’s Rockers is in the process of preparing a production cost budget for August. Actual costs in July for 120 rocking chairs were: Materials cost?$4,800??Labor cost?3,000??Rent?1,500??Depreciation?2,500??Other fixed costs?3,200??Total?$15,000????Materials and labor are the only variable costs. If production and sales are budgeted to increase to 150 chairs in August, how much is the expected total variable cost on the August budget? ?$9,750?? ?$17,325?? ?$16,950?? ?$18,750????ProGo plans to sell 1,200 carriers next year and has budgeted sales of $48,000 and profits of $20,000. Variable costs are projected to be $22 per unit. Nathan Co. offers to pay $21,000 to buy 600 units from ProGo. Total fixed costs are $5,000 per year. This offer does not affect ProGo’s other planned operations. The incremental revenues for this situation are ?$7,800.?? ?$6,000.?? ?$21,000.?? ?$27,000.??Breezes Curacao has 200 rooms. Each room rents at $130 per night and variable costs total $42 per room per night of…
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