_____________________ is reported on the balance sheet and is the cost of products that have been started into production but have not yet been completed.

• Actual sales of $6,000,000
• Break-even sales of $4,800,000
• Total fixed costs of $2,040,000
• Variable costs equal to 60% of sales

What is the margin of safety ratio?

If total fixed costs increase (while all else stays the same), break-even point will ____________.

Top Hat Enterprises uses a predetermined overhead rate based on machine hours for applying overhead. For the current year, total estimated overhead is $20,000,000 and total estimated machine hours are 2,000,000 hours. Actual machine hours for the year were 1,900,000 hours and actual overhead was $18,000,000. Calculate the predetermined overhead rate per machine hour. Do not include dollars signs or commas.