Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Good Scent, Inc., produces two colognes: Roses and Violet. Of the two, Rose is more popluar. Data concerning the two products follow: Rose voilet Expected
Good Scent, Inc., produces two colognes: Roses and Violet. Of the two, Rose is more popluar. Data concerning the two products follow:
ABC and Products Good Son, Inc. Hose and to reach Vi Even) 50,000 10.000 1100 900 web hours .000 10.000.000 50 Packing order 100 Material contra 35 Director cost perce 110 Whend 5 Druction Machine Variable $200.000 200.000 300.000 Packing department 223,000 123.000 Total $350,000 $16.000 Required: 1. Ung the wind spread compute the number of one of the Violet that we wody to be your computer the number of red to the nearest whenumber the constructor de tweede Variable Delbert 1 300.000 243,000 200.000 2.000 10.000.000 Heged 1. Using the woman.com the father was they the brother 10 2,992 2. to the ve the CW Done Document1.docx AC and CW Analysis Mutole Products Good Scent, tre, produces two cologne Rose and Violet of the two, Rose is more pow. Data concerning the twe products foow Rose Violet Expected 50,000 10,000 Selling price pe care 5100 580 Dwect labor hours 0.000000 Machine houts 10.000.000 Receiving orders 50 25 Packing orders 100 50 Materaco perc $50 54 Det tabor cost percase The company uses a conventional costing item and signs overhead costs to products usine derect tobor hours Awal overhead costs follow. They are draded as fired or variable wth bed Variable Drect laborbentes 5 - 200.000 200.000 263.000 Receiving department 225.000 Packing department 125.000 Tolos 5550,000 5462,000 All depreciation Required: Done Document1.docx 125.000 550.000 3463,000 Pading department Total costs *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, found variable unt cost to the nearest cent and round the number of breaktien packages to the nearest whole number, Breakeven cases of Rome 14,960 cases Brest even cases of Violet 2,992 2. Using an activity-based approach, tomoute the number of cases of each product that must be sold for the company to break even. In your computations, round al computed amourts to the nearest cent and round the number of bere tien packages to the nearest whole number Break even cases of Rose Break even cases of Violet X cases X cases OW Rose voilet
Expected sales (in case). 50,000. 10,000
selling price per case. 100.00. 80.00
direct labor hours. 36,000. 6,000
machine hours. 10,000. 3,000
receiving orders 50. 25
packing orders. 100. 50
material cost per case. 50. 43
direct labor cost per case. 10. 7
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. 0.00 200,000
machine cost. 200,000 262,000
receiving department 225,000 0.00
packing department 125,000 0.00
total cost. 550,000 462,000
*all depreciation
1. Using the convential approach, comoute the number of cases of Rose and the number if cases of violet that must be sild for the company to break even. In your computations, round variable unit cost to the nearest cent amd round the number of break-even packages to the nearest whole number.
Break-even cases of Rose 14,960.00 (is correct)
Break-even cases if violet 2,992 (is correct)
2. Using thr activity-based approach, comoute the number of cases of each product that must be sold for the company to break even. In your comoutations, round all computed amounts to the nearest cent and round the number of break even packages to the nearest while number.
Break-even cases of Rose ___________ cases
Break-even cases of Violet ___________ cases
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started