G. Mar DRC has bottal manufacture 53,201.000 had vertetan plant wide basis to in two produchSoft Woodland Wooding machine hour, which are estioned to be 300,000 for the current. The cogany has decided to it Bated conting and has created five activity cost pool and related activity centres fotos Activity Centre Estimated Overhead Espected Activity Materiallardanger mus 5.000 29.000 m Per . werden Product Testing Number 540,000 2.2010 MS 10.00 Man Machine hours 750,000 500 machine how Each unit of here Sun Wood 5210 $100 Hard Wood 195 $55 Direct Menu Directors Pacheter Map Product Testing Main Mineral 2 5 40 3 7 2 SO 1 Underwona con her, at the same . 2. Caleate the total manufacturing products under AC Quest.2: Marta The Bandien het Laut Company reported the following out for the currenye Sales 52.700,000 Variable Corte H.150,000 Controllable and cost 400.000 Average Operating Arts SO Sme Management shows the entireuments them of the throne whilante meter the rest you. The manager blevet resionale to contach of the following independent commento Increases by $270,000 with me change in the image 2. Reducere com $120.000 Required Calculate the wine for the currently . formulate the Order of the production and te one decimal Question 3. BS Marks Devon Firm is considering whether to outsource the manufacture of subcomponents The accounting department provides the following cost information for manufacturing 10.000 units of the Subcomponent Y2 per month Direct Material Costs S42.500 Direct Labour Costa $32.000 Variable Overhead $15.000 Fixed Overhead $12.500 *Fixed overhead includes $5.000 Supervisor's salary Stadia Firm agrees to supply Devon with 30,000 units per month for a total cost of $122.500 the subcomponent XY2 is outsourced, Devon will be able to increase the production and sales of testinal product by 1.000 units per month, which is sold for 5104 per unit and its average variable costs per unit are $72. The supervisor's salary will be eliminated if subcomponent XYZ is outsource Required . Prepare an incremental analysis for the subcomponent XYZ. Your analysis should have columns for (1) Make the subcomponent XYZ12) Buy the subcomponent XYZ. and 3) Incremental Costs Savings Based on your analysis, what decision should management make Would the decision be different if Devon has the opportunity to produce 2.000 units with the facilities currently being used to manufacture the subcomponent XYZ? Show calculation Devon Firm is considering whether to outsource the manufacture of subcomponent XYZ. The accounting department provides the following cost information for manufacturing 10,000 units of the subcomponent XYZ per month. Direct Material Costs $42,500 Direct Labour Costs $32,000 Variable Overhead $15,000 Fixed Overhead $12,500 *Fixed overhead includes $5,000 Supervisor's salary. Stadia Firm agrees to supply Devon with 10,000 units per month for a total cost of $122,500. If the subcomponent XYZ is outsourced, Devon will be able to increase the production and sales of its final product by 1,000 units per month, which is sold for $104 per unit and its average variable costs per unit are $72. The supervisor's salary will be eliminated if subcomponent XYZ is outsourced. Required: a. Prepare an incremental analysis for the subcomponent XYZ. Your analysis should have columns for (1) Make the subcomponent XYZ, (2) Buy the subcomponent XYZ, and (3) Incremental Costs (Savings) b. Based on your analysis, what decision should management make? C. Would the decision be different if Devon has the opportunity to produce 2,000 units with the facilities currently being used to manufacture the subcomponent XYZ? Show calculations. The Blue division of the Leaf Company reported the following data for the current year: Sales $2,700,000 Variable Costs $2,150,000 Controllable Fixed Costs $400,000 Average Operating Assets $5,050,000 Senior Management is unhappy with the investment centre's return on investment. It asks the manager of the Blue division to submit plans to improve the ROI in the next year. The manager believes it is reasonable to consider each of the following independent courses of action. 1. Increase sales by $270,000 with no change in the contribution margin percentage 2. Reduce variable costs by $120,000 3. Reduce average operating assets by 4.5% Required: a. Calculate the return on investment for the current year. b. Using the ROI formula, calculate the ROI under each of the proposed courses of action (Round to one decimal) DFC Inc. has budgeted manufacturing overhead costs of $2,195,000. It has allocated overhead on a plant-wide basis to its two products (Soft Wood and Hard Wood) using machine hours, which are estimated to be 109,000 for the current year. The company has decided to experiment with activity based costing and has created five activity cost pools and related activity cost drivers as follows: Activity Centre Material Handling Purchase Orders Product Testing Machine Set-up Machining Cost Driver Number of moves Number of orders Number of tests Number of set-ups Machine hours Estimated Overhead $250,000 $235,000 $440,000 $520,000 $750,000 Expected Activity 29,000 moves 3,850 orders 7,250 tests 6,700 set-ups 75,500 machine hours Each unit of the products requires the following: Direct Material Costs Direct Labour Costs Purchase Orders Machine Set-up Product Testing Machining Material Handling Soft Wood $270 $150 3 2 5 40 5 Hard Wood $195 $55 4 7 7 60 6 Required: 1. Under traditional costing using machine hours, calculate the total manufacturing cost per unit of both products. 2. Calculate the total manufacturing cost per unit for both products under ABC