Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3:05 LTE ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data

image text in transcribed
3:05 LTE ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Rose Violet Expected sales in cases) 53,500 10,700 Selling price per case $99 $80 Direct labor hours 37,400 6,400 Machine hours 9,700 3,400 Receiving orders 49 22 Packing orders 103 54 Material cost per case $52 544 Direct labor cost per case S12 $8 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Fixed Variable Direct labor benefits $183,960 Machine costs 190,000* 341.640 Receiving department 248.000 Packing department 112,000 Total costs $550,000 $525,600 2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break even. In your computations, round all computed amounts to the nearest cent and round the number of break-even packages to the nearest whole number. Break-even cases of Rose fill in the blank 3 Break-even cases of Violet fill in the blank 4 Feedback 1. Remember to calculate package contribution margin per unit. 2. Benefits and Machine costs are unit based variable costs. The CVP formula will utilize thrnn note that utiliza Y1 number

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit To Love

Authors: Jezabel Lima

1st Edition

B0C2SG8JS7, 979-8988078807

More Books

Students also viewed these Accounting questions

Question

identify current issues relating to equal pay in organisations

Answered: 1 week ago