Please help me with the attached questions.
Question 16: Marginal Maintenance Company makes screwdrivers in a single process and uses weighted average process costing. All material is added at the start of the process. The following information is available for May production:
What are the equivalent units for conversion costs?
Question 17: Dreamland Company produces pillows. Each pillow has a variable cost of $8 and fixed costs are $78,000 per month. Each pillow sells for $17. If the company produces and sells 65,000 pillows in February, at this level of activity, total costs per unit are:
Question 18: PotteryWorks Company sold 60,000 units of product for $22 per unit. Their unit product cost using process costing is $11 per unit and the company has fixed costs of $240,000 per month. The company predicts that a $2 decrease in the selling price will generate a 20% increase in sales during the next period. If the company lowers the price which of the following will occur in the next period?
A Net income will increase by $36,000.
B Net income will decrease by $12,000.
C Total fixed costs will increase by $48,000.
D The variable costs per unit will decline by $2 per unit.
Question 19: Sam's Chop has budgeted the following costs for a month in which 1,500 steak dinners will be produced and sold: Materials, $3,750; labor (variable), $3,000; rent(fixed),$2,400; straight-line depreciation, $600; and other costs that don't change when the number of dinner sold changes, $1,800. Sam sells the steak dinners for $10.00 each.
What is the budgeted total fixed cost?
Question 20: Paul's Pizza produced and sold 2,000 pizzas last month and had fixed costs of $6,000. If production and sales are expected to increase by 10% next month, which of the following statements is true?
A Total fixed costs will increase.
B Total fixed costs will decrease.
C Fixed cost per unit will increase.
D Fixed cost per unit will decrease.© BrainMass Inc. brainmass.com September 19, 2018, 7:45 am ad1c9bdddf - https://brainmass.com/business/accounting/managerial-accounting-equivalent-units-conversion-costs-280461
The solution explains some multiple choice questions relating to managerial accounting