2. Dominic Company, which uses a job costing system, had the following items appear in the Work in Process account during July 2019: July 1, 2019, balance $ 40,000 Raw materials placed into production Direct labor (4,000 hours) 240,000 Factory overhead applied 168,000 Cost of goods manufactured 600,000 July 31, 2019, balance 32.000 Dominic Company applies overhead based on direct labor costs. Job X, the only job in process on July 31, used 150 direct labor hours. Additionally, sales and selling & adninistrative expenses were $790,000 and $125,000, respectively. The income tax rate was 30 percent. Required: a. Calculate the predetermined factory overhead application rate for Dominic Company, b. Calculate the amounts of raw materials, direct labor, and factory overhead included in the ending work in process balance. c. Calculate the amount of raw materials placed into production during July 2019, d. Calculate the gross margin assuming that the finished goods inventory decreased by $4,000 during the month. e. Calculate the after-tax net income for July 2019, a. 3. Blair Enterprises sells a product for $110 per unit. The variable cost is $60 per unit, while fixed costs are $150,000. Additionally, the income tax rate is 30 percent. Required: Calculate the contribution margin per unit. b. Calculate the break-even point in sales units. Calculate the break-even point in sales dollars or revenues. d. How many units need to be sold to generate a pretax income of $90,000? e. Recalculate the break-even point in sales units if the selling price increased to $120 per unit. Round your answer to the nearest whole number. f. Calculate the after-tax net income assuming that 5,000 units are sold. c. 4. Harriet Company manufactures two products (H and C). The overhead costs ($320,000) have been divided into four cost pools that use the following activity drivers: Number of Setups Number of Orders Machine Hours Packing Orders Product H 50 10 300 100 1,000 4,000 200 100 Cost per pool $36,000 $24,000 $200,000 $60,000 The direct materials and direct labor used to produce products A and B are: Direct Materials Direct labor H $150,000 160.000 $130,000 140,000 Required: a. Compute the overhead rate assuming that a plant-wide rate using machine hours is used. b. Calculate the total costs assigned to products H and C using the plant-wide rate calculated in part (a). c. Compute the allocation rates for each of the activity drivers listed. d. Calculate the total costs assigned to products H and C using the activity-based costing approach? 5. Detrix Clinic bases its budgets on the activity measure patient-visits. During July, the clinic planned for 3,100 patient- visits. The clinic has provided the following data concerning the formulas it uses in its budgeting: Fixed costs per month Revenue Wages and salaries Supplies Insurance Miscellaneous expense $ $ $ $ 36,300 1,000 12,000 5,400 $ $ $ S Variable cost per customer 51.80 16,20 9.60 2.60 0.10 The clinic has also furnished its income statement for July: Chaloux Clinic Income Statement For the Month Ended July 31 Actual patient-visits 2,900 151,280 Revenue Expenses: Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expense Net operating income 81,630 28,820 20,160 5,910 136,520 14,760 Required: Prepare a report showing the clinic's activity variances for July. 6. Giovanni Company makes two products from a common input. Joint processing costs up to the split-off point total $43,200 a year. The company allocates these costs to the joint products based on their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Allocated joint processing costs Sales value at the split-off point Costs of further processing Sales value after further processing Product X $ 25,600 $ 32,000 $ 15,900 $ 47,500 Product Y $ 17,600 $ 22,000 $ 17,400 $ 40,800 Total $ 43,200 $ 54,000 $ 33,300 $ 88,300 Required: a. What is the financial advantage (disadvantage) of processing Product X beyond the split-off point? c. b. What is the financial advantage (disadvantage) of processing Product Y beyond the split-off point? What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point? 7. Emilio Corporation has the following information about the purchase of a new piece of equipment: Cash revenues less cash expenses $300,000 per year Cost of equipment Salvage value at the end of the 10th year Increase in working capital requirements $1,100,000 $100,000 $140,000 Tax rate 30 percent 10 years Life The cost of capital is 15 percent. Required (use excel): a. Calculate the following assuming straight-line depreciation: i. Calculate the after-tax net income for each of the ten years. ii. Calculate the after-tax cash flows for each of the ten years. iii. Calculate the after-tax payback period. iv. Calculate the accrual accounting rate of return on original investment for each of the ten years. v. Calculate the net present value (NPV). vi. Calculate the internal rate of return (IRR). b. Calculate the following assuming that depreciation expense is $200,000, $180,000, $160,000, $140,000, $120,000, $100,000, $80,000, $60,000, $40,000 and $20,000 for years 1 through 10, respectively: i. Calculate the after-tax cash flows for each of the ten years. ii. Calculate the after-tax payback period. iii. Calculate the net present value (NPV). iv. Calculate the internal rate of return (IRR). 1. The following information pertains to Bobby Enterprises for June 2019: Beginning direct materials Beginning finished goods Beginning work in process Cost of goods manufactured Direct materials purchases Ending direct materials Ending finished goods Ending work in process Factory overhead Gross profit Selling and administrative expenses $10,000 16,000 11,000 152,000 55,000 13,000 20,000 9,000 58,000 30,000 12,000 Direct labor Direct materials used Net income (loss) Total manufacturing costs added Cost of goods sold Sales ? ? ? ? ? ? Assume an income tax rate of 30 percent. Required: Calculate the following values for Bobby Enterprises: a. Net operating income b. Total manufacturing costs added during the month c. Cost of goods sold d. Sales e. Direct materials used f. Direct labor g. Conversion costs h. Prime costs i. After-tax net income