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Habitat Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8.000 direct manufacturing

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Habitat Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8.000 direct manufacturing labor-hours in Department 200. The budgeted manufacturing overheads for the month were SAR 57,500 and SAR 62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows: Department 100 Department 200 Direct materials purchased on accountSAR110.000 SAR177,500 Direct materials used 32,500 13,500 Direct manufacturing labor 52,500 53,500 Indirect manufacturing labor 11,000 9,000 Indirect materials used 7,500 4.750 Lease on equipment 16,250 3,750 Utilities 1,000 1.250 Job A incurred 800 machine-hours in Department 100 and 300 manufacturing labor-hours in Department 200. The company uses a budgeted overhead rate for applying overhead to production Required: (4 marks) a. Determine the budgeted manufacturing overhead rate for each department. (1 pts) b. Prepare the summary journal entry to record the allocation of manufacturing overhead for Department 100. (1.5 pts) c. What is the total cost of Job A? (1.5 pts) Question 2: Nalco Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category (manufacturing overhead). The following information is obtained for 2020: Total manufacturing costs, $8,300,000 Manufacturing overhead allocated, $4,100,000 (allocated at a rate of 250% of direct manufacturing labor costs) Work-in-process inventory on January 1, 2017, $420,000 Cost of finished goods manufactured, $8,100,000 Required: (1.5 marks) Use information in the first two bullet points to calculate (a) direct manufacturing labor costs in 2020 and (b) cost of direct materials used in 2017. Question 3: (4.5 mark) A Toy store sells remote control car. The average selling price is SAR 15 and the average variable cost is SAR 9. The fixed costs of the store are SAR 100,000. 1. What is the Contribution margin per unit? (0.5 PTS) 2. What is Contribution margin percentage? (0.5 PTS) 3. What is the operating income for the month assuming that A Toy store sells 20,000 remote control? (2 PTS) 4. What is the breakeven point in unit? (0.5 PTS) 5. If the owner desired a profit of SAR 25,000, what will be break-even point in SAR? (1 PTS) P82

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