I need help with the following problems. Please explain how you arrived at each calculation so I have a better chance of understanding the process.

Carlton Corporation manufactures paper shredding equipment. You are requested to "audit" a sampling of computations made by Carlton's internal accountants via your independent recalculation of the information.

Instructions: Compute the requested information for each of the following independent situations (present supporting calculations).

(a) Each paper shredder has a standard material cost of 20 pounds at $6.50 per pound or $130 in total. 60,000 pounds of material were purchased for $420,000 during the period and 39,000 pounds were used in the production of 2,000 good units. Compute the direct materials price and quantity variances, and label them as favorable or unfavorable.

(b) Carlton uses a process costing system. 2,000 units were in process at the beginning of the period, 60% complete. 20,000 units were started into production during the period; 1,000 were in process at the end of the period, 60% complete. Compute equivalent units for conversion costs.

(c) Carlton sells each unit for $500. Variable costs per unit equal $350. Total fixed costs equal $600,000. Carlton is currently selling 5,000 units per period and would like to earn net income of $300,000. Compute: (1) break-even point in dollars; (2) sales units necessary to attain desired income

(a) Material Price Variance = (Actual Price - Standard Price) Actual Quantity Purchased
Actual Price = 420,000/60,000 = 7.00
Material Price Variance = (7-6.50) 60,000 = $30,000 U as the actual price is higher
Material quantity variance = (Actual quantity used - Standard Quantity) Standard Price
Actual quantity used = 39,000 ...

Solution Summary

In about 210 words, this solution explains the concepts of a break-even analysis, variance and conversion costs. All calculations required are included and the response is organized in chart format.

The following costs were incurred in May:
Direct materials...........................................................................
$41,000
Direct labor.................................................................................
$13,000
Manufacturing overhead.....................................................

(See the attachment)
Problem 3
% Complete % Complete
Units Materials Conversion
Work in process July 1 6,000 75% 40%
Work in process July 31 4,000 50% 25%
Materials cost in work in process July 1 $56,000
Conversion costs in work in process July 1 $14,900
Units starte

What is a break-even point? If an organization's fixed costs increase, what happens to the break-even point? How can the break-even point be lowered? Why is the break-even analysis an important tool for management? When evaluating a company, how might this information be used?

What happens at a company's break-even point? How can you compute the break-even point for a company? How can a change in costs for a product or service be incorporated into the break-even calculation?

1) Problem 3-13 / Conversion Costs
Hartwell Drug Company produces a supplement to improve bone density. Conversion costs and added evenly throughout the production process. The following information is available for March:

Finance Example - Break Even Analysis.
The break even point for a business is given by the formula:
B = F/P-V
where:
B = units sold to breakeven point
F = fixed costs
P = price per unit
V = variable costs
Suppose EducateComp knows its fixed costs are $100,000, its variable costs are
$500 per copy of AlgeComp, and

Factors and considerations used in determining if a variance is over- or under-applied.
Why is this type of analysis important to managers?
What are some causes of variances?
How should they be addressed?
Who should be held responsible for these variances?

1. ABC Company sell for $20 per unit, and the variable cost to produce them is $15. Gateway estimates that the fixed costs are $80,000.
a. Compute the break-even point in units.
b. Fill in the table below (in dollars) to illustrate that the break-even point has been achieved.
Sales _______________
-Fixed costs _____