Expected sales (in cases)Selling price per caseDirect labor hoursMachine hoursReceiving ordersPacking ordersMaterial cost per case$49Direct labor cost per case$10The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhlabor hours.Direct labor benefitsMachine costsReceiving departmentPacking department*Total costsAll depreciationFixed$Rose VioletBreak-even cases of RoseCheck My WorkBreak-even cases of Violet48,000 9,600$100 $8036,900 5,95010,3503,350→ 231,000Break-even cases of Rose-49962848$43$8$218,535213,000* 252,815102,000$546,000 $471,350Required:1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold focost to the nearest cent and round the number of break-even packages to the nearest whole number.VariableX cases2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break evcent and round the number of break-even packages to the nearest whole number.casescases

Contribution Margin Ratio: The contribution margin ratio shows the difference between the actual…

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 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual over labor hours. Direct labor benefits Machine costs Receiving department Packing department Total costs All depreciation Fixed $ Break-even cases of Rose Rose Violet Break-even cases of Violet Check My Work 48,000 9,600 $100 $80 36,900 5,950 10,350 3,350 Break-even cases of Rose 213,000* 231,000 102,000 49 96 $49 $10 28 48 $43 $8 $546,000 $471,350 Required: 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold f cost to the nearest cent and round the number of break-even packages to the nearest whole number. Variable $218,535 252,815 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 e cent and round the number of break-even packages to the nearest whole number. cases cases

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 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual over labor hours. Direct labor benefits Machine costs Receiving department Packing department Total costs All depreciation Fixed $ Break-even cases of Rose Rose Violet Break-even cases of Violet Check My Work 48,000 9,600 $100 $80 36,900 5,950 10,350 3,350 Break-even cases of Rose 213,000* 231,000 102,000 49 96 $49 $10 28 48 $43 $8 $546,000 $471,350 Required: 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold f cost to the nearest cent and round the number of break-even packages to the nearest whole number. Variable $218,535 252,815 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 e cent and round the number of break-even packages to the nearest whole number. cases cases

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Thalassines Kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses: Advertising (for the bilge pump product line). Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager i Insurance on inventories Purchasing department Total fixed expenses Net operating loss *Common costs allocated on the basis of machine-hours. +Common costs allocated on the basis of sales dollars. $ 125,000 48,000 13,000 28,000 108,000 42,000 113,000 13,000 57,000 $ 460,000 Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump? 186,000 274,000 361,000 $ (87,000) Discontinuing the bilge pump would not affect sales of other product lines and would have no effect on the company's total general factory overhead or total Purchasing Department expenses.
Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. UnitsProduced TotalLumberCost TotalUtilitiesCost Total MachineDepreciationCost 7,000 shelves $84,000 $9,550 $140,000 14,000 shelves 168,000 17,600 140,000 28,000 shelves 336,000 33,700 140,000 35,000 shelves 420,000 41,750 140,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Utilities Depreciation 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion…
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Activity-Based Customer Costing Deeds Company sells custom-made machine parts to industrial equipment manufacturers by bidding cost plus 40 percent, where cost is defined as manufacturing cost plus order processing cost. There are two types of customers: those who place small, frequent orders and those who place larger, less frequent orders. Cost and sales information by customer category is provided below. Frequently OrderingCustomers Less FrequentlyOrdering Customers Sales orders 45,000 4,500 Order size 15 150 Average unit manufacturing cost $40 $40 Order-processing activity costs: Processing sales orders $2,878,500 Order-filling capacity is purchased in steps (order-processing clerks) of 1,000, each step costing $46,000; variable order-filling activity costs are $35 per order. The activity capacity is 55,000 orders; thus, the total order-filling cost is $4,262,500 [(55 steps × $46,000) + ($35…
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