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Can someone help me with the steps? Expected sales in cases) 47,500 9,500 Selling price per case $102 $82 Direct labor hours 37,800 6,400 Machine
Can someone help me with the steps?
Expected sales in cases) 47,500 9,500 Selling price per case $102 $82 Direct labor hours 37,800 6,400 Machine hours 10,950 2,550 Receiving orders 52 28 Packing orders 102 49 Material cost per case $51 $44 Direct labor cost per case $9 $6 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 $ $198,900 Machine costs 214,000 243,100 Receiving department 225,500 Packing department 143,000 Total costs $582,500 $442,000 All depreciation Required: 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold for the company to break even. In your computations, round variable unit cost to the nearest cent and round the number of break-even packages to the nearest whole number Break-even cases of Rose 14,724 x Break-even cases of Violet 2,946 X 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 14,873 X Break-even cases of Violet 2,975 XStep by Step Solution
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