4. (4 points) Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: Month Units Shipped 30 60 40 50 70 80 20 Total Shipping Expense January February March April May June July 1,800 2.300 $ 1,700 $ 2,000 $ 2,300 $2,700 $1,200 Required: Using lhe high-low method, calculate the equation of a cost line for the shipping expense for this company (Y -a + bX) . 4 points) Jardon Painting paints the interiors and exteriors of hoes and coa erciai buildings. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its activity-based costing system. Activity Cost Pool Activity Annual Activity Measure Square meters Jobs None Painting 30,000 square meters Job support Other 1,100 jobs Not applicable Job Painting Support Other Total Total 150,000 $110,000 $75,0O S33500 Required: a. Compute the activity rates (i.e., cost per unit of activity) for the Painting and Job Support activity cost pools by fing in the table below. Round off all calculations to the nearest whole cent. Job Painting Suppor Activity Rate b. Prepare a Product Margin report for ONE job that involves painting 400 square meters and has direct materials cost of $1,000 and direct labor cost of S1,190. The total sales revenue from this job is $4,600. 4. (4 points) Archer Company is a wholesaler of custom-built air-conditioning units for 2. (10 points) Perkins Company produces and sells a single product. The company's ircome statement for the most recent month is given below: $435,000 Sales (15,000 units at $29 per unit) Less variable costs: Direct materials (variable) Direct labor (variable) Variable factory overhead Variable selling and other expenses $60,000 75,000 45,000 30,000 210.000 Contribution margin Fixed factory overhead Net operating income 225,000 Less fixed expenses: 100,000 85,000 185,000 Fixed selling and other expenses S 40,000 There are no beginning or ending inventories. Required: a. Compute the company's break-even point in units and sales dollars. b. What would the company's monthly net operating income be if sales and total variable costs increased by 30% and total fixed factory overhead dropped by S25,000? What total level of sales (in units) must the company achieve in order to earn a target profit of $145,000? The company has decided to automate a portion of its operations. The change will reduce direct labor costs per unit by 50 percent, but it will double the costs for fixed factory overhead. Every other cost remains unchanged. Compute the new break-even point in units. c. d. i.(10 points) Penny Black Ltd., which has only one product, has provided the following data concerning its most recent month of operations: Selling price $104 Units in beginning inventory Units produced Units sold Units in ending inventory 0 27,000 21,000 6,000 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $270,000 $150,000 Required: What is the unit product cost for the month under variable costing? What is the unit product cost for the month under absorption costing? Prepare an income statement for the month using the contribution format and the variable costing method Prepare an income statement for the month using the traditional format and the absorption costing method. a. b. C. d