Homework Help is Here – Start Your Trial Now!
Business
Accounting
ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Expected sales (in cases) Selling price per case Direct labor hours. Machine hours Receiving orders Packing orders. Material cost per case Direct labor cost per case Direct labor benefits. Machine costs Receiving department Packing department Total costs All depreciation Fixed $ $8 $9 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Break-even cases of Rose Rose Break-even cases of Violet 53,000 10,600 $103 $81 33,500 6,400 10,850 3,100 52 Break-even cases of Rose 101 Break-even cases of Violet Violet $48 $191,520 190,000* 207,480 231,000 147,500 $568,500 $399,000 28 55 $42 Variable Required: 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold for the company. to break even. In your computations, round variable unit cost to the nearest cent and round the number of break-even packages to the nearest whole number. X cases 2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break even. In your computations, round all computed amounts to the nearest cent and round the number of break-even packages to the nearest whole number. cases cases cases

ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Expected sales (in cases) Selling price per case Direct labor hours. Machine hours Receiving orders Packing orders. Material cost per case Direct labor cost per case Direct labor benefits. Machine costs Receiving department Packing department Total costs All depreciation Fixed $ $8 $9 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Break-even cases of Rose Rose Break-even cases of Violet 53,000 10,600 $103 $81 33,500 6,400 10,850 3,100 52 Break-even cases of Rose 101 Break-even cases of Violet Violet $48 $191,520 190,000* 207,480 231,000 147,500 $568,500 $399,000 28 55 $42 Variable Required: 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold for the company. to break even. In your computations, round variable unit cost to the nearest cent and round the number of break-even packages to the nearest whole number. X cases 2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break even. In your computations, round all computed amounts to the nearest cent and round the number of break-even packages to the nearest whole number. cases cases cases

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

Please help me with all answers thanku 

ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Expected sales (in cases) Selling price per case Direct labor hours Machine hours Receiving orders Packing orders Material cost per case Direct labor cost per case Direct labor benefits Machine costs Receiving department Packing department Total costs All depreciation Fixed $ $8 $9 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Break-even cases of Rose Rose Violet Break-even cases of Violet 53,000 10,600 $103 $81 6,400 3,100 Break-even cases of Rose 33,500 10,850 Break-even cases of Violet 52 101 Variable $191,520 190,000* 207,480 231,000 147,500 $568,500 $399,000 $48 28 55 Required: 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold for the company to break even. In your computations, round variable unit cost to the nearest cent and round the number of break-even packages to the nearest whole number. $42 X cases 2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break even. In your computations, round all computed amounts to the nearest cent and round the number of break-even packages to the nearest whole number. cases cases cases
Transcribed Image Text:ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Expected sales (in cases) Selling price per case Direct labor hours Machine hours Receiving orders Packing orders Material cost per case Direct labor cost per case Direct labor benefits Machine costs Receiving department Packing department Total costs All depreciation Fixed $ $8 $9 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Break-even cases of Rose Rose Violet Break-even cases of Violet 53,000 10,600 $103 $81 6,400 3,100 Break-even cases of Rose 33,500 10,850 Break-even cases of Violet 52 101 Variable $191,520 190,000* 207,480 231,000 147,500 $568,500 $399,000 $48 28 55 Required: 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold for the company to break even. In your computations, round variable unit cost to the nearest cent and round the number of break-even packages to the nearest whole number. $42 X cases 2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break even. In your computations, round all computed amounts to the nearest cent and round the number of break-even packages to the nearest whole number. cases cases cases
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS