Actual Static Budget Production 54,000 units 60,000 units Machine-hours 985 hours 1,800 hours Fixed overhead costs for September $53,400 $90,000 The fixed-overhead budgeted cost-allocation rate (BR) $50.00 per machine-hour. Standard quantity per 1 unit (SQ) (1,800m/h: 60,000)= 0.03m/h What is the flexible-budget amount?

A. $60,000
B. $53,400
C. $90,000
D. $54,000

Margaret company reported the following information for the current year: net sales $3,000,000 purchases $1,957,000 beginning inventory $245,000 ending inventory $115,000 cost of goods sold 65% of sales industry averages available are: inventory turnover 5.29 gross profit percentage 28% how do the inventory turnover and gross profit percentage for margaret company compare to the industry averages for the same ratios? (round inventory turnover to two decimal places. round gross profit percentage to the nearest percent.)

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?

During the economic periods of , the economy is at its highest point and unemployment is low, in addition, total income is high and consumers are willing to buy products and services.