Part A (8 Marks) Presented below are Panetta Ltd's monthly costs and expenses data relating to its bowling shoes: Rubber used to make shoe soles $175 2001 Rent on factory building 7500 Sales commissions paid to sell bowling shoes 42 000 Wages of assembly line workers 80 000 Salaries of factory supervisor 7000 16 000 Depreciation on factory equipment Depreciation on delivery trucks 4000 Required: From the above information, calculate the total amount of: (a) Prime cost (2 Marks) (b) Manufacturing overhead (2 Marks) (c) Conversion cost (2 Marks) (d) Period cost (2 Marks) Part B (12 Marks) Ben Ltd manufactures ducted air conditioners. Unit data for ducted air conditioner model are as follows: Air conditioner model $6300 Selling price Variable costs and expenses Direct materials 1040 Direct labour 2000 1000 Manufacturing overhead Selling and administrative 1000 Total variable costs and expenses $5040 The fixed costs are: manufacturing overhead $200 300, and selling and administrative expenses $41 700. Required: (a) Calculate the contribution margin ratio for the ducted air conditioner model. (3 Marks) (b) Calculate the break-even point in dollars for the ducted air conditioner model. (3 Marks) (c) (i) Calculate the margin of safety ratio assuming that the company expects to sell 420 ducted air conditioner models. (2 Marks) (ii) Discuss how managers of Ben Ltd use this margin of safety ratio information to manage the profitability of the ducted air conditioner model? (4 Marks) (Total 20 Marks)