Need solutions to questions below - with steps: 45. All other things being equal, a company that sells multiple products should attempt to structure its sales mix so the greatest portion of the mix is composed of those products with the highest: a. selling price. b. variable cost. c. contribution margin. d. fixed cost. e. gross margin. *44. GoGrow produces shovels and rakes. Sales and costs for the most recent year are indicated below: Shovels Rakes Total Units 8,000 20,000 28,000 Sales revenue $160,000 $40,000 $200,000 Variable costs 98,000 18,000 116,000 Fixed costs 28,000 12,000 40,000 Profit $ 34,000 $10,000 $ 44,000 The number of units and selling price per unit appears to be stable for the foreseeable future. How much total revenue will GoGrow have at breakeven? A. $95,238 B. $13,333 C. $146,663 D. $156,000 39. Snider, Inc., which has excess capacity, received a special order for 4,000 units at a price of $15 per unit. Currently, production and sales are budgeted for 10,000 units without considering the special order. Budget information for the current year follows. Sales $190,000 Less: Cost of goods sold 145,000 Gross margin $ 45,000 Cost of goods sold includes $30,000 of fixed manufacturing cost. If the special order is accepted, the company's income will: A. increase by $2,000. B. decrease by $2,000. C. increase by $14,000. D. decrease by $14,000. E. change by some other amount HiTech Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Cost Driver Material handling $ 225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $3,880,000 IMBA 6050 Final Exam Page 8 of 18 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 5 Labor hours per unit 2 2 2 *19. Under an activity-based costing system, what is the per-unit cost of Standard? A. $164. B. $228. C. $272. D. $282. *20. Assume that HiTech is using a volume-based costing system, and the preceding manufacturing costs are applied to all products based on direct labor hours. How much of the preceding cost would be assigned to Deluxe? A. $456,471. B. $646,471. C. $961,176. D. $1,141,176. 14. Fletcher Company disposes of under- or overapplied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $590,000 in a year when manufacturing overhead was underapplied by $15,000. If sales revenue totaled $1,400,000, determine (1) Fletcher's adjusted cost of goods sold and (2) gross margin. Adjusted Cost of Goods Sold Gross Margin A. $575,000 $810,000 B. $575,000 $825,000 C. $590,000 $810,000 D. $605,000 $795,000 E. $605,000 $810,000 13. Carlson charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of labor hours. The following data pertain to the current year: Budgeted manufacturing overhead: $1,600,000 Actual manufacturing overhead: $1,632,000 Budgeted labor hours: 50,000 Actual labor hours: 48,000 Which of the following choices denotes the correct status of manufacturing overhead at year-end? A. Overapplied by $32,000. B. Underapplied by $32,000. C. Overapplied by $68,000. D. Overapplied by $96,000. E. Underapplied by $96,000. Dale Company, which applies overhead at the rate of 190% of direct labor cost, began work on job no. 101 during June. The job was completed in July and sold during August, having accumulated direct material and labor charges of $27,000 and $15,000, respectively. On the basis of this information, the total overhead applied to job no. 101 amounted to: A. $0. B. $28,500. C. $51,300. D. $70,500. E. $79,800. Sweet Products produces mint syrup used by gum and candy companies. Recently, the company has had excess capacity due to a foreign supplier entering its market. Sweet Products is currently bidding on a potential order from Red Sugar Candy for 5,000 cases of syrup. The estimated cost of each case is $27.50, as follows: direct material, $10; direct labor, $5; and manufacturing overhead, $12.50. The overhead rate of $2.50 per direct labor dollar is based on estimated annual overhead of $1,500,000 and estimated direct labor of $600,000, composed of $400,000 of variable costs and $1,100,000 of fixed costs. The largest fixed cost relates to depreciation of plant and equipment. Should Sweet Products bid on the Red Sugar Candy business at $20 per case? A. No, because the incremental loss will be $7.50 per case. B. Yes, because the incremental profit will be $1.67 per case. C. No, because there are too many qualitative considerations. D. Yes, because the incremental profit will be $2.50 per case