1. Blizzard, LLC manufactures snowboards. BLLC began 2020 with an inventory of 250 boards. During the year, it produced 1,200 boards and sold 1,400 for $300 each. Fixed production costs were $169,020,...

1. Blizzard, LLC manufactures snowboards. BLLC began 2020 with an inventory of 250 boards. During the year, it produced 1,200 boards and sold 1,400 for $300 each. Fixed production costs were $169,020, and variable production costs were $112 per unit. Fixed advertising, marketing, and other general and administrative expenses were $75,000, and variable shipping costs were $20 per board. Assume that the cost of each unit in beginning inventory is equal to 2020 inventory cost. Blizzard uses a denominator level of 1,200 units.
 
· Prepare an income statement assuming Blizzard uses variable costing.
· Prepare an income statement assuming Blizzard uses absorption costing.
· Compute the
eakeven in units under variable and absorption costing.
2. Cooking Whiz manufactures premium food processors. The following are some manufacturing overhead data for Cooking Whiz for the year ended December 31, 2020:
 
Manufacturing OH                  Actual Results             Flexible Budget           Allocated Amount 
 
Variable                                   $71,808                           $80,640                      $80,640
Fixed                                       360,672                           351,360                      368,640
 
Budget number of output units:  915
Planned Allocation Rate: 2 machine hours per unit
Actual number of machine hours: 1,632
Static Budget variable manufacturing OH costs: $76,860
 
Compute the following quantities:
· Budgeted number of machine hours planned
· Budgeted fixed manufacturing overhead costs per machine hours
· Budgeted variable manufacturing overhead costs per machine hours
· Budgeted number of machine hours allowed for actual output produced
· Actual number of output units
· Actual number of machine hours used per output unit
3. Roy Travel offers helicopter service from subu
an towns to John F. Kennedy International Airport in New York City. Each of its nine helicopters makes between 1,350 and 2,100 round trips per year. The records indicate that a helicopter that has made 1,350 round trips in the year incurs an average operating cost of $450 per round trip, and one that has made 2,100 round trips in the year incurs an average operating cost of $350 per round trip.
 
· Using the high-low method, estimate the linear relationship y= a + bX, where y is the total annual operating costs of a helicopter, and X is the number of round trips to JFK airport during the year.
· Give examples of costs that would be included in a and in b.
· If Roy Travel expects each helicopter to make, on average, 1,700 round trips in the coming year, what should be its estimated operating budget for the helicopter fleet?