Can I get the answers to 4-5. Koontz Company manufactures two models of industrial components-a Basic model and an Advanced Model. The companyconsiders all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based ondirect labor-hours. Koontz's controller prepared the segmented income statement that is shown below for the most recent year (heallocated selling and administrative expenses to products based on sales dollars):BasicAdvancedTotalNumber of units produced and sold20,00010,00030,000$3,000,0002,300,000$ 5,000,0003,650,0001,350,000Sales$2,000,0001,350,000Cost of goods soldGross marginSelling and administrative expenses700,000720,000650,000480,0001,200,000Net operating income (loss)$ (20,000)$170,000150,000Direct laborers are paid $20 per hour. Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model.Koontz is considering a change from plantwide overhead allocation to a departmental approach. The overhead costs in the company'sMolding Department would be allocated based on machine-hours and the overhead costs in its Assemble and Pack Department wouldbe allocated based on direct labor-hours. To enable further analysis, the controller gathered the following information:AssembleMolding$ 787,500and PackTotalManufacturing overhead costsDirect labor hours:$ 562,500$ 1,350,00010,0005,000Basic20,00010,00030,00015,000AdvancedMachine hours:Basic12,00010,00012,00010,000Advanced 3. Koontz's production manager has suggested using activity-based costing instead of either the plantwide or departmentalapproaches. To facilitate the necessary calculations, she assigned the company's total manufacturing overhead cost to five activitycost pools as follows:ManufacturingActivity MeasureMachine-hours in MoldingActivity Cost PoolMachiningAssemble and packOrder processingSetupsOther (unused capacity)Overhead$417,500282,500Direct labor-hours in Assemble and PackNumber of customer orders230,000340,00080,000Setup hours$1,350,000She also determined that the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. Themolding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and threehours are required to setup for an order of the Advanced model.The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertisingcosts include $150,000 for the Basic model and $200,000 for the Advanced model. The remainder of the company's selling andadministrative costs are organization-sustaining in nature.Using the additional information provided by the production manager, calculate:a. An activity rate for each activity cost pool.b. The total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity-based approach.c. The total selling and administrative cost traced to the Basic model and the Advanced model using the activity-based approach.4. Using your activity-based cost assignments from requirement 3, prepare a contribution format segmented income statement that isadapted from Exhibit 6-8. (Hint: Organize all of the company's costs into three categories: variable expenses, traceable fixed expenses,and common fixed expenses.)5. Using your contribution format segmented income statement from requirement 4, calculate the break-even point in dollar sales forthe Advanced model.

The question is based on the concept of Cost Accounting.

Koontz Company manufactures two models of industrial components-a Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz's controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic Advanced Total Number of units produced and sold 20,000 10,000 30,000 $ 5,000,000 3,650,000 1,350,000 1,200,000 $3,000,000 $2,000,000 1,350,000 Sales Cost of goods sold Gross margin Selling and administrative expenses 2,300,000 700,000 650,000 720,000 480,000 Net operating income (loss) $ (20,000) $ 170,000 $ 150,000