Koontz Company manufactures two models of industrial components-a Basic model and an Advanced Model, The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz's controller prepared the segmented Income statement that is shown below for the most recent year the allocated selling and administrative expenses to products based on sales dollars) Number of units produced and sold Basic Advanced Total 20,70 20,000 30, ceg Sales $3,000,000 $2,000,000 $5,000,000 Cost of goods sold 2,100,000 1,350, ece 3,650,000 Gross margin 700,000 650,000 1,350,00 Selling and administrative expenses 220,000 400.000 1.200.000 Net operating income (los) $ (20,000) $ 170,000 150,00 $ Direct laborers are paid $20 per hour. Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model Koontz is considering a change from plantwide overhead allocation to a departmental approach. The overhead costs in the company's Molding Department would be allocated based on machine hours and the overhead costs in its Assemble and Pack Department would be allocated based on direct labor hours. To enable further analysis, the controller gathered the following information Melding $ 77,500 Manufacturing overhead costs Direct labor hours Basic Advanced Machine bours: Assemble and Pack Total $ 562,500 $1,350,000 20,000 30,000 10,000 15,000 10,000 5,000 12.000 10,000 12,000 10,000 Advanced Required: 1. Using the plantwide approach: a. Calculate the plantwide overhead rate. b. Calculate the amount of overhead that would be assigned to each product. 2. Using a departmental approach: a. Calculate the departmental overhead rates, 6. Calculate the total amount of overhead that would be assigned to each product. c. Using your departmental overhead cost allocations, redo the controller's segmented income statement (continue to allocate selling and administrative expenses based on sales dollars) 3. Koontz's production manager has suggested using activity based costing Instead of either the plantwide or departmental approaches. To facilitate the necessary calculations, she assigned the company's total manufacturing overhead cost to tive activity cost pools as follows: Manufacturing Activity Cost Pool Activity Measure Overbe Machining Machine-hours in Molding $ 417,500 Assemble and pack Direct labor-hours in Assemble and Pack 282,500 Order processing Number of customer orders 230,000 Sartups Setup hours 340.000 Other (unused capacity 30,00 5 1.350.000 She also determined that the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model The company pays a soles commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable lixed advertising costs, include $150.000 for the Basic model and $200,000 for the Advanced model. The remainder of the company's selling and true Setups Other (unused capacity) Setup hours SUV 340,000 80,000 1,350,000 $ She also determined that the average order size for the Basic and Advanced models is 400 units and 50 units, respectively. The molding machines require a setup for each order. One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model. The company pays a sales commissions of 5% for the Basic model and 10% for the Advanced model. Its traceable fixed advertising costs include $150,000 for the Basic model and $200.000 for the Advanced model. The remainder of the company's selling and administrative costs are organization sustaining in nature Using the additional Information provided by the production manager, calculate: a. An activity rate for each activity cost pool b. The total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity based approach c. The total selling and administrative cost traced to the Basic model and the Advanced model using the activity based approach. 4. Using your activity based cost assignments from requirement 3 prepare a contribution format segmented income statement that is adapted from Exhibit 6-8 (Hint: Organize all of the company's costs into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) 5. Using your contribution format segmented income statement from requirement 4 calculate the break even point in dollar sales for the Advanced model, Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 Reg 2c Req 3A Req 3B Reg 3C Reg 4 Reg 5 Using your activity-based cost assignments from requirement 3, prepare a contribution format segmented Income statement that is adapted from Exhibit 6-8. (Hint: Organize all of the company's costs into three categories: variable expenses, traceable fixed expenses, and common fixed expenses.) (Round your intermediate calculations to 2 decimal places.) owle Show less Koontz Company Income statement Total Basic Advanced Vanable oxponses Total vanable expenses 0 0 0 0 Traceable food oxpenses Total variable expenses 0 0 0 0 Traceable fixed expenses Total traceable fixed expenses Segment margin Common fixed expenses 0 0 $ Total common fixed expenses 0 0 4. Using your activity-based cost assignments from requirement 3. prepare a contribution format segmented income statement that is adapted from Exhibit 6-8 (Hint: Organize all of the company's costs into three categories: variable expenses, traceable fixed expenses and common fixed expenses.) 5. Using your contribution format segmented income statement from requirement 4 calculate the break-even point in dollar sales for the Advanced model. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2A Reg 20 Req 20 Beg Reg 38 Reg 30 Reg4 Reg 5 Using your contribution format segmented Income statement from requirement 4, calculate the break-even point in dollar sales for the Advanced model. (Round your intermediate calculations to 2 decimal places. Hound your final answer to the nearest whole dollar) Break even point in dollar sales