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3. Koontz's production manager suggested using activity-based costing instead of either the plantwide or departmental approaches. To facilitate the necessary calculations, she assigned the company's

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3. Koontz's production manager suggested using activity-based costing instead of either the plantwide or departmental approaches. To facilitate the necessary calculations, she assigned the company's total manufacturing overhead cost to five activity cost pools as follows: She also determined the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model anc three hours 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 advertising costs include $150,000 for the Basic model and $200,000 for the Advanced model. The remainder of the company's selling and administrative 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 adapted 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 for the Advanced model. Using activity-based costing, calculate an activity rate for each activity cost pool. Note: Round your answers to 2 decimal places. Using activity-based costing, calculate the total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity-based approach. Note: Round your intermediate calculations to 2 decimal places. Using your activity-based cost assignments from requirement 3, prepare a contribution format segmented income statement adapted from Exhibit 6-8. (Hint: Organize all of the company's costs into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) Note: Round your intermediate calculations to 2 decimal places. Using your contribution format segmented income statement from requirement 4 , calculate the break-even point in dollar sales for the Advanced model. Note: Round your intermediate calculations to 2 decimal places. Round your final answer to the nearest whole dollar

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