Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Homework Help - 98 + - C # ezto.mheducation.com/ext/m returnUrls253D25252Fwebapps%25252FBb-McGrawHill-BB595a831 18bflex25252Fapp%%25252Funiversal dBanRbZXIXOm9_uh-4_RS4im2tJWXbEB-03Fc6165CDejkoLhtmUwZMTqoCKzXTnKkulG5LrXYQ7hrkLnX_Y Project Two (Parts 1, 2, 3 & 5) i Saved Help Save &

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Homework Help - 98 + - C # ezto.mheducation.com/ext/m returnUrls253D25252Fwebapps%25252FBb-McGrawHill-BB595a831 18bflex25252Fapp%%25252Funiversal dBanRbZXIXOm9_uh-4_RS4im2tJWXbEB-03Fc6165CDejkoLhtmUwZMTqoCKzXTnKkulG5LrXYQ7hrkLnX_Y Project Two (Parts 1, 2, 3 & 5) i Saved Help Save & Exit Submit Problem 4-44 (Algo) Application of Overhead [LO 4-3, 4-4, 4-5] March. The following information applies to the O'Donnell Company for March production. There are only two jobs (X and Y) in production in 6 points a. Purchased direct materials and indirect materials with the following summary of receiving reports: Skipped Material A 25, 506 Todirect me Total eBOOK $ 50, 000 b. Issued direct materials and indirect materials with this summary of requisitions: Job x Job Y Total Material A $ 9, 900 $ 19, 806 $ 29, 706 subtotal 5 14, 860 $ 29, 700 $ 44, 508 Indirect materials Total 43, 750 $ 88, 250 c. Factory labor incurred is summarized by these time tickets: Job X 10b Y 5 25, 800 Indirect labor 16, 908 Total d. Factory utilities, factory depreciation, and factory insurance incurred is summarized as follows: Depreciation Insurance 21, 806 Total 5 31, 100 . Factory overhead costs were applied to jobs at the predetermined rate of $55.50 per machine hour. Job X incurred 1,100 machine hours; Job Y used 800 machine hours. . Job X was completed; Job Y was still in process at the end of March. The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of March. Required: 1. Calculate the total manufacturing cost for Job X and Job Y for March. 2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment. 1. Total manufacturing costs - Job X Total manufacturing costs - Job Y 2. Cost of goods sold OMG Feb 25 8:38 0C ezto.mheducation.com/ext/m ap/index.html?_con=con&external_browser=0&launchUrl=ht returnUrls 253D25252Fwebapps25252FBb-McGrawHill-BB595a83118bfle%25252Fapp%25252Funiversal d8anRbZXIXOm9_uh-4_RS4im2tJWXbEB-03Fc6165CDejkoLhtmUld4hYpJJhfor8XhciJOpPKB81XVxKpbil Project Two (Parts 1, 2, 3 & 5) i Saved Help Save & Exit Submit Problem 5-45 (Algo) Volume-Based Costing versus ABC [LO 5-1, 5-3, 5-5] 2 The following information applies to the questions displayed below.] ADA Pharmaceutical Company produces th gs-Diomycin, Hom killer) family of medication. Since its inception four years ago, ADA has used a direct labor hour-based system to assign manufacturing overhead costs to products. 24 points Eme Weissman, the president of ADA Pharmaceutical, has just read about activity-based costing in a trade journal. With Skipped some curiosity and interest, she asked her financial controller, Takedo Simon, to examine differences in product costs between the firm's current costing and activity-based costing systems. ADA has the following budget information for the year: . BOOK Homycin Addolin Cost of direct materials $ 256, 080 254, 000 Number of direct labor hours 241, 060 910 , 006 6, 710 eferences er of capsules 491 , 000 291: 900 ADA has identified the following activities and cost drivers and has assigned them a total overhead cost of $195,500. Budgeted Budgeted overhead cost Driver Activity Cost Driver Cost Setup hours Number of Workers $ 12, 700 Supervision of all Direct Labor hours 45 180 15, 100 order exped Customers serve 50, 700 Total overhead $195 , 500 Takedo selected the cost drivers with the following justifications: SETUP HOURS: The cost driver of setup hours is used because the same product takes about the same amount of setup ime regardless of size of batch. For different products, however, the setup time varies. NUMBER OF WORKERS: Plant management includes plant maintenance and corresponding managerial duties that make production possible. This activity depends on the number of workers. The more workers involved, the higher the cost. DIRECT LABOR HOURS: Supervisors spend their time supervising production. The amount of time they spend on each product is proportional to the direct labor hours worked. INSPECTION HOURS: Inspection involves testing a number of units in a batch. The time varies for different products but is the same for all similar products. NUMBER OF CUSTOMERS SERVED: The need to expedite production increases as the number of customers served by the company increases. Thus, the number of customers served by ADA is a good measure of expediting production orders. Takedo gathered the following information about the cost driver volume for each product: Diomycin Homycin Addolin setup hours 365 565 Direct labor hours 110 155 1, 910 Customers served 105 655 Part 1 (Algo) Required: . Use the firm's current direct labor hour-based costing system to calculate the unit cost of each product. 2. Use the activity-based costing system to calculate the unit cost of each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the firm's current direct labor hour-based costing system to calculate the unit cost of each product. (Round your intermediate calculations and final answers to two decimal places.) Diomycin Homycin Addolin Direct Materials $ 196,000.00 $ 256,000.00 $ 249,000.00 Direct Labor $ 241,000.00 $ 225,000.00 $ 254,000.00 Overhead Total Cost 437,000.00 $ 481,000.00 $ 503,000.00 Number of Capsules 910,000 491,000 291,00 Cost per capsule Graw M O GC Feb 25 8:39 0 9 0C ezto.mheducation.com/ext/m ap/index.html?_con=con&external_browser=0&launchUrl=ht returnUrls 253D25252Fwebapps25252FBb-McGrawHill-BB595a83118bfle%25252Fapp%25252Funiversal d8anRbZXIXOm9_uh-4_RS4im2tJWXbEB-03Fc6165CDejkoLhtmUld4hYpJJhfor8XhciJOpPKB81XVxKpbil Project Two (Parts 1, 2, 3 & 5) i Saved Help Save & Exit Submit Problem 5-45 (Algo) Volume-Based Costing versus ABC [LO 5-1, 5-3, 5-5] 2 The following information applies to the questions displayed below.] ADA Pharmaceutical Company produces th gs-Diomycin, Hom killer) family of medication. Since its inception four years ago, ADA has used a direct labor hour-based system to assign manufacturing overhead costs to products. 24 points Eme Weissman, the president of ADA Pharmaceutical, has just read about activity-based costing in a trade journal. With Skipped some curiosity and interest, she asked her financial controller, Takedo Simon, to examine differences in product costs between the firm's current costing and activity-based costing systems. ADA has the following budget information for the year: . BOOK Homycin Addolin Cost of direct materials $ 256, 080 241, 060 254, 000 Number of direct labor hours er of capsules 910 , 006 6, 710 eferences 491 , 000 291: 900 ADA has identified the following activities and cost drivers and has assigned them a total overhead cost of $195,500. Budgeted Budgeted overhead cost Driver Activity Cost Driver Cost Setup hours Number of Workers $ 12, 700 Supervision of all Direct Labor hours 45 180 15, 100 order exped Customers serve 50, 700 Total overhead $195 , 500 Takedo selected the cost drivers with the following justifications: SETUP HOURS: The cost driver of setup hours is used because the same product takes about the same amount of setup ime regardless of size of batch. For different products, however, the setup time varies. NUMBER OF WORKERS: Plant management includes plant maintenance and corresponding managerial duties that make production possible. This activity depends on the number of workers. The more workers involved, the higher the cost. DIRECT LABOR HOURS: Supervisors spend their time supervising production. The amount of time they spend on each product is proportional to the direct labor hours worked. INSPECTION HOURS: Inspection involves testing a number of units in a batch. The time varies for different products but is the same for all similar products. NUMBER OF CUSTOMERS SERVED: The need to expedite production increases as the number of customers served by the company increases. Thus, the number of customers served by ADA is a good measure of expediting production orders. Takedo gathered the following information about the cost driver volume for each product: Diomycin Homycin Addolin setup hours 365 565 Direct labor 110 155 1, 910 Customers served 105 655 Part 1 (Algo) Required: . Use the firm's current direct labor hour-based costing system to calculate the unit cost of each product. 2. Use the activity-based costing system to calculate the unit cost of each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the activity-based costing system to calculate the unit cost of each product. (Round intermediate calculations to 2 decimal places. Round "Cost per capsule" to 2 decimal places.) Diomycin Homycin Addolin Direct Materials 196,000.00 $ 256,000.00 $ 249,000.00 Direct Labor $ 241,000.00 $ 225,000.00 $ 254,000.00 Overhead Total Cost 437,000.00 $ 481,000.00 $ 503,000.00 Number of Capsules 910,000 000'T6 291,00 Cost per capsule Graw M O GC Feb 25 8:39 0 0Home C ezto.mheducation.com/ext/m ap/index.html?_con=con&external_brows returnUrls25309%25252Fwebapps925252FBb-McGrawHill-BB595a83118bflex25252Fapp25252Funiversal dBanRbZXIXOm9_uh-4_RS4i_m2tJWXbEB-03Fc6165CDejkolhtmUAkLCheD2LBXYxnJIRfX6g921/6obwm4M Project Two (Parts 1, 2, 3 & 5) i Saved Help Save & Exit Submit 3 Problem 9-37 (Algo) CVP Analysis; Strategy [LO 9-1, 9-2, 9-3] Bubba's Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba's carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel 18 to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth points at Bubba's has been great. The business is very competitive, however, and Bubba, the owner, has relied on his knowledgeable and courteous staff to attract and retain customers who otherwise might go to other western wear stores. Because of the rapid growth in Skipped sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and training new salespeople. Sales price $ 80.00 Per unit v . BOOK Purchase cost Sales commissions 31.50 23.50 Total per unit variable costs $ 55.00 eferences Total annual fixed expenses Advertising Rent 217 , 508 Salaries 328: 080 Total fixed expenses $ 753, 500 Required: . Calculate the annual breakeven point, both in terms of units and in terms of sales dollars. 2. If Bubba's sells 31,000 hats, what is its before-tax income or loss? Support your answer by preparing a contribution income statement. 3. If Bubba's sells 44,000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? 4. Bubba is considering the elimination of sales commissions completely and increasing salaries by $265,000 annually. What would be the new breakeven point in units? W t would be the before-tax income or loss if 31,000 hats are sold with the new salary plan? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If Bubba's sells 31,000 hats, what is its before-tax income or loss? Support your answer by preparing a contribution income statement. Before-tax income or loss Contribution Income Statement Feb 25 8:40 9 0Home C ezto.mheducation.com/ext/m ap/index.html?_con=con&external_brows returnUrls25309%25252Fwebapps925252FBb-McGrawHill-BB595a83118bflex25252Fapp25252Funiversal dBanRbZXIXOm9_uh-4_RS4i_m2tJWXbEB-03Fc6165CDejkolhtmUAkLCheD2LBXYxnJIRfX6g921/6obwm4M Project Two (Parts 1, 2, 3 & 5) i Saved Help Save & Exit Submit 3 Problem 9-37 (Algo) CVP Analysis; Strategy [LO 9-1, 9-2, 9-3] Bubba's Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba's carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel 18 to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth points at Bubba's has been great. The business is very competitive, however, and Bubba, the owner, has relied on his knowledgeable and courteous staff to attract and retain customers who otherwise might go to other western wear stores. Because of the rapid growth in Skipped sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and training new salespeople. Sales price $ 80.00 Per unit v . BOOK Purchase cost Sales commissions 31.50 23.50 Total per unit variable costs $ 55.00 eferences Total annual fixed expenses Advertising Rent 217 , 508 Salaries 328: 080 Total fixed expenses $ 753, 500 Required: . Calculate the annual breakeven point, both in terms of units and in terms of sales dollars. 2. If Bubba's sells 31,000 hats, what is its before-tax income or loss? Support your answer by preparing a contribution income statement. 3. If Bubba's sells 44,000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? 4. Bubba is considering the elimination of sales commissions completely and increasing salaries by $265,000 annually. What would be the new breakeven point in units? W t would be the before-tax income or loss if 31,000 hats are sold with the new salary plan? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If Bubba's sells 44,000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? (Round "MOS ratio" answer to 1 decimal place.) Margin of safety (MOS) in dollars MOS ratio % Feb 25 8:40 9 9 0Home C ezto.mheducation.com/ext/m ap/index.html?_con=con&external_brows returnUrls25309%25252Fwebapps925252FBb-McGrawHill-BB595a83118bflex25252Fapp25252Funiversal dBanRbZXIXOm9_uh-4_RS4i_m2tJWXbEB-03Fc6165CDejkolhtmUAkLCheD2LBXYxnJIRfX6g921/6obwm4M Project Two (Parts 1, 2, 3 & 5) i Saved Help Save & Exit Submit 3 Problem 9-37 (Algo) CVP Analysis; Strategy [LO 9-1, 9-2, 9-3] Bubba's Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba's carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel 18 to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth points at Bubba's has been great. The business is very competitive, however, and Bubba, the owner, has relied on his knowledgeable and courteous staff to attract and retain customers who otherwise might go to other western wear stores. Because of the rapid growth in Skipped sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and training new salespeople. Sales price $ 80.00 Per unit v . BOOK Purchase cost Sales commissions 31.50 23.50 Total per unit variable costs $ 55.00 eferences Total annual fixed expenses Advertising Rent 217 , 508 Salaries 328: 080 Total fixed expenses $ 753, 500 Required: . Calculate the annual breakeven point, both in terms of units and in terms of sales dollars. 2. If Bubba's sells 31,000 hats, what is its before-tax income or loss? Support your answer by preparing a contribution income statement. 3. If Bubba's sells 44,000 hats, what is its margin of safety (MOS) in dollars and MOS ratio 4. Bubba is considering the elimination of sales commissions completely and increasing salaries by $265,000 annually. What would be the new breakeven point in units? W t would be the before-tax income or loss if 31,000 hats are sold with the new salary plan? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Bubba is considering the elimination of sales commissions completely and increasing salaries by $265,000 annually. What would be the new breakeven point mister ca salary plan? (Do not round intermediate calculations.) in units? What would be the before-tax income or loss if 31,000 hats are sold with the new New breakeven point in units Before-tax income or loss Feb 25 8:40 9 0Homework Help - 98 C ezto.mheducation.com/ext/m ap/index.html?_con=con&external_browser Urls253D9%25252Fwebapps25252FBb-McGrawHill-BB595a831 18bfle%25252Fapp%25252Funiversal 18anRbZXIhXom9_uOh-4_RS4i_m2tJWXbEB-03Fc6165COejkoLhtmVbQNaqc03COa2yqB-alkGcyOJSSEuOXYC Project Two (Parts 1, 2, 3 & 5) Saved Help Save & Exit Submit 4 Required information Problem 13-38 (Algo) Target Costing in a Service Firm [LO 13-1] (The following information applies to the questions displayed below.] 6 points JR Safe Systems installs home security systems. Two of its systems, the ICU 100 and the ICU 900, have these Skipped characteristics: Design Specifications ICU 100 ICU 900 cost Data video monitors 3 's 60/ ea . BOOK motion detectors $ 13/ea Alarms $ 18/ ea Wiring 80 feet 1, 120 feet Installation $ 18/hour eferences The ICU 100 sells for $990 installed, and the ICU 900 sells for $1,720 installed Part 1 (Algo) Required: . What are the current gross profit margin percentages on both systems? 2. UR Safe's management believes that it must drop the price on the ICU 100 to $950 and on the ICU 900 to $1,590 to remain competitive in the market. Recalculate gross profit margin percentages for both products at these price levels and then compute the target cost needed for each product to maintain the current gross profit margin percentages. (For all requirements, round your percentage answers to 2 decimal places (i.e. .1234 = 12.34%) and other answers to the nearest whole dollar amount.) ICU 100 ICU 900 1. Current profit margin Profit margin Target cost ON Feb 25 8:41 9 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bookkeeping All In One For Dummies

Authors: Consumer Dummies

1st Edition

1119094216, 978-1119094210

More Books

Students also viewed these Accounting questions

Question

An improvement in the exchange of information in negotiations.

Answered: 1 week ago