my Manufacturing overhead costs Direct labor hours: Basic Advanced Machine hours: Basic Advanced Required: 1. Using the plantwide approach: a. Calculate the plantwide overhead rate. Molding $ 787,500 10,000 5,000 12,000 10,000 Assemble and Pack $ 562,500 20,000 10,000 Total $ 1,350,000 b. Calculate the amount of overhead that would be assigned to each product. 2. Using a departmental approach: a. Calculate the departmental overhead rates. 30,000 15,000 12,000 10,000 b. 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 five activity cost pools as follows: Check my work Integration Exercise 6 Plantwide and Departmental Overhead Allocation; Activity-Based Costing; Segmented Income Statements [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 6-4, LO 6-5, LO 7-1, LO 7-3, LO 7-4] 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 (he allocated selling and administrative expenses to products based on sales dollars): Number of units produced and sold Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) Basic 20,000 $ 3,000,000 2,300,000 700,000 720,000 $ (20,000) Advanced 10,000 $ 2,000,000 1,350,000 650,000 480,000 $ 170,000 Total 30,000 $ 5,000,000 3,650,000 1,350,000 1,200,000 $ 150,000 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: Assemble and 5 Check my work 9. What is Hixson's margin of safety at a sales volume of 25,000 units? (Do not round your intermediate values.) 10. What is Hixson's degree of operating leverage at a sales volume of 25,000 units? (Round your answer to 1 decimal places.) 1. Total product costs incurred 1. Total period costs incurred 2. Variable manufacturing cost per unit produced 2. Average fixed manufacturing cost per unit produced 3. Variable manufacturing cost per unit produced 3. Average fixed manufacturing cost per unit produced 4. Total direct manufacturing costs incurred 4. Total indirect manufacturing costs incurred 5. Total incremental manufacturing cost incurred 6. Contribution margin per unit 6. Contribution margin ratio 7. Break-even point in unit sales 7. Break-even point in dollar sales 8. Increase in net operating income 9. Margin of safety 10. Degree of operating leverage % Units 5 Check my work 9. What is Hixson's margin of safety at a sales volume of 25,000 units? (Do not round your intermediate values.) 10. What is Hixson's degree of operating leverage at a sales volume of 25,000 units? (Round your answer to 1 decimal places.) 1. Total product costs incurred 1. Total period costs incurred 2. Variable manufacturing cost per unit produced 2. Average fixed manufacturing cost per unit produced 3. Variable manufacturing cost per unit produced 3. Average fixed manufacturing cost per unit produced 4. Total direct manufacturing costs incurred 4. Total indirect manufacturing costs incurred 5. Total incremental manufacturing cost incurred 6. Contribution margin per unit 6. Contribution margin ratio 7. Break-even point in unit sales 7. Break-even point in dollar sales 8. Increase in net operating income 9. Margin of safety 10. Degree of operating leverage % Units 5 Check my work 9. What is Hixson's margin of safety at a sales volume of 25,000 units? (Do not round your intermediate values.) 10. What is Hixson's degree of operating leverage at a sales volume of 25,000 units? (Round your answer to 1 decimal places.) 1. Total product costs incurred 1. Total period costs incurred 2. Variable manufacturing cost per unit produced 2. Average fixed manufacturing cost per unit produced 3. Variable manufacturing cost per unit produced 3. Average fixed manufacturing cost per unit produced 4. Total direct manufacturing costs incurred 4. Total indirect manufacturing costs incurred 5. Total incremental manufacturing cost incurred 6. Contribution margin per unit 6. Contribution margin ratio 7. Break-even point in unit sales 7. Break-even point in dollar sales 8. Increase in net operating income 9. Margin of safety 10. Degree of operating leverage % Units 10 1 points Skipped eBook Print References Required: Check my work 1. For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? What is the total amount of period costs incurred to sell 25,000 units? 2. If 24,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? (Round your answers to 2 decimal places.) 3. If 26,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? (Round your answers to 2 decimal places.) 4. If 27,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? 5. What total incremental manufacturing cost will Hixson incur if it increases production from 25,000 to 25,001 units? (Round your answer to 2 decimal places.) 6. What is Hixson's contribution margin per unit? What is its contribution margin ratio? (Round "Contribution margin per unit" to 2 decimal places and "Contribution margin ratio" to 1 decimal place.) 7. What is Hixson's break-even point in unit sales? What is its break-even point in dollar sales? (Do not round your intermediate values.) 8. How much will Hixson's net operating income increase if it can grow production and sales from 25,000 units to 26,500 units? 10 1 points Skipped eBook Print References Required: Check my work 1. For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? What is the total amount of period costs incurred to sell 25,000 units? 2. If 24,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? (Round your answers to 2 decimal places.) 3. If 26,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? (Round your answers to 2 decimal places.) 4. If 27,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? 5. What total incremental manufacturing cost will Hixson incur if it increases production from 25,000 to 25,001 units? (Round your answer to 2 decimal places.) 6. What is Hixson's contribution margin per unit? What is its contribution margin ratio? (Round "Contribution margin per unit" to 2 decimal places and "Contribution margin ratio" to 1 decimal place.) 7. What is Hixson's break-even point in unit sales? What is its break-even point in dollar sales? (Do not round your intermediate values.) 8. How much will Hixson's net operating income increase if it can grow production and sales from 25,000 units to 26,500 units