2. Electric Sound, Inc. manufactures two types of speakers: Deluxe and Extreme. During October, 42 Deluxe speakers and 319 Extreme speakers were produced. An analysis of the estimated overhead costs reveals the following activities: Activities Cost Drivers Estimated Cost Materials handling # of requisitions $140,000 Machine setups # of setups 110,000 Quality inspections # of inspections 108,000 $358,000 The cost driver volume for each product was: Cost Driver Deluxe Extreme # of requisitions 200 300 # of setups 100 150 # of inspections 100 500 a) Determine the activity rates for each activity. 140000 - 929 0 requisitions 500 103,000 1 80 b) How much overhead is assigned to Deluxe? 1 1 9000 Sa -=440/ setups 600 C) How much overhead is assigned to Extreme? d) What is the overhead cost per unit for Deluxe? e) What is the overhead cost per unit for Extreme? 3. Fixed costs = $90,000; Variable cost per unit = $1.20; Selling price per unit = $2 a) What is the break even point in units? 99000 2- 1.20 112,500 units b) What is the break even point in sales dollars? 90000$225,000 40% c) What is the sales revenue needed to generate a target income of $18,000. (90000 + 18000)-40%=1279000 d) What is the margin of safety percentage at the sales level needed to generate the target income of $18,000? 279000 - 22 Soon 16.67% 270,000