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I've asked this question twice already and both were wrong, the first set of answers were 14,225 & 2,845 and now 10,757 & 8,716. Thank
I've asked this question twice already and both were wrong, the first set of answers were 14,225 & 2,845 and now 10,757 & 8,716. Thank you for your time! ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Rose Violet 51,000 10,200 Expected sales in cases) Selling price per case Direct labor hours $101 $79 33,350 6,250 Machine hours 9,650 3,450 Receiving orders 48 27 Packing orders 96 51 Material cost per case $50 $42 Direct labor cost per case $11 $8 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 $ $186,120 Machine costs 180,500 249,480 Receiving department 209,500 Darbina denartment 14n Onn Fixed Variable Direct labor benefits $ $186,120 Machine costs 249,480 Receiving department Packing department 180,500 209,500 140,000 Total costs $530,000 $435,600 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, round variable unit cost to the nearest cent and round the number of break-even packages to the nearest whole number. 14,225 Break-even cases of Rose Break-even cases of Violet 2,845 2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break even. In your computations, round all computed amounts to the nearest cent and round the number of break-even packages to the nearest whole number. Break-even cases of Rose 10,757 X Break-even cases of Violet 8,716 x
I've asked this question twice already and both were wrong, the first set of answers were 14,225 & 2,845 and now 10,757 & 8,716. Thank you for your time!
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