1.The Rapid Meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $ 450,000 per year. Service varies from a cup of coffee to full meals. The average sales check for each customer is $8.00. The average cost of food and other variable costs for each customer is $ 3.20. The income tax rate is 30%. Target income after tax is $ 105,000.

Required :

a)Compute the revenues needed to obtain the target income.

b)How many sales checks are needed to breakeven? Verify your answer.

c)Compute the net income if the number of sales checks is 150,000.

d)Calculate the degree of operating leverage at the present level of sales.

2.Vista group provides architectural services for residential and business clients. Its job costing system has a single direct cost category and a single indirect cost pool. Budgeted and actual amounts for 2020 are as follows. During 2020, Vista group designed a new restaurant village for Carefree Years Inc. Actual professional labor hours spent for the project were 1720 hours.

Budget for 2020

Professional labor components$ 40,00,000

Client support department costs$ 26,00,000

Professional labor hours billed to clients40,000 hours

Actual Results for 2020

Client support department costs$ 24,36,000

Professional labor hours billed to clients42,000 hours

Actual professional labor cost rate$ 110 per hour

Required :

Prepare Job-order cost sheet for the project of Vista group using actual costing, normal costing and extended normal costing. Show all necessary computations.