Exercise 9-32 (Algo) Reported Costs and Decisions (LO 9-1) Kima Company manufactures and sells two models of a home appliance The Standard model is a basic appliance with mostly manual features, while the Galaxy model is highly automated The appliances are produced to order and there are no inventories at the end of the year The cost accounting system at Kima allocates overhead to products based on direct labor cost Overhead in year 1, which just ended. was $3.342 250 Other data for year for the two products follow Standard Model Galaxy Model (20,000 units) (3,000 w) Salet revenue 36,150,000 $2,850.000 Direct materials 2,550,000 450,000 Direct labor 1,750,000 555,000 Required: o. Compute product line profits/loss for the Standard model and the Galaxy model for year 1 b. A study of overhead shows that without the Standard model, overhead would fall to $2.325,000. Assume all other revenues and costs would remain the same for the Galaxy model in year 2 Compute product line profits.loss for the Galaxy model in yeo 2 assuring the Standard model was not produced or sold Complete this question by entering your answers in the tabs below. Required A Required Compute product line profit loss for the standard model and the Galaxy model for year 1. (Do not found intermediate calculations. Negative amounts should be indicated by a mindign) Profils Standard Galaxy Required) Exercise 9-32 (Algo) Reported Costs and Decisions (LO 9-1) Kima Company manufactures and sells two models of a home appliance The Standard model is a basic appliance with mostly manual features, while the Galaxy model is highly automated The appliances are produced to order and there are no inventories at the end of the year The cost accounting system at Kima allocates overhead to products based on direct labor cost Overhead in year 1, which just ended, was $3,342.250. Other data for year for the two products follow Sales revende Direct aterials Direct labor Standard Hadel (20.000 units) 56,150,000 2.550.000 1.750,000 Galaxy Model 13.000 units) 32,850,000 450,000 555,000 Required: a. Compute product line profits loss for the Standard model and the Galaxy model for year 1 b. A study of overhead shows that without the Standard model overhead would fall to $2.325,000. Assume all other revenues and costs would remain the same for the Galaxy model in year 2. Compute product line profits/loss for the Galaxy model in year 2 assuming the Standard model was not produced or sold Complete this question by entering your answers in the tabs below. Required A Required A study of overhead shows that without the Standard model, overhead would fall to $2,325,000. Assume all other revenues and costs would remain the same for the Galaxy model in year 2. Compute product line profits/loss for the Galaxy model in year 2 assuming the Standard model was not produced or sold. (Negative amount should be indicated by a minus sign) Profits/Loss for Galaxy Model Year 2
