Please answer requirement (16. & 17.)
Boyd Corporation is a manufacturer that uses job-order costing. On January 1, 2024, the company's inventory balances were as follows: Raw Materials Inventory Work-in-Process Inventory Finished Goods Inventory $63,000 $41,000 $58,000 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, 2024, the company's predetermined overhead rate per direct labor-hour was based on a cost formula that estimated $806,000 of total manufacturing overhead for an estimated activity level of 62,000 direct labor-hours. A B 1 2 The following transactions were recorded for the year: 3 4 a Raw materials were purchased on account, $558,000. Raw materials used in production, $528,000. All of the raw materials were used as direct 5 b materials. The following costs were accrued for employee services: direct labor, $648,000; indirect labor, 6 C $198,000, selling and administrative salaries, $288,000. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and 7 d finished goods warehousing), $415,000. 8 e Incurred various manufacturing overhead costs (e.g., rent, insurance, and utilities), $548,000. Manufacturing overhead cost was applied to production. The company actually worked 44,000 9 f direct labor-hours on all jobs during the year. Jobs costing $1,728,000 to manufacture according to their job cost sheets were completed 10 g during the year. Jobs were sold on account to customers during the year for a total of $2,848,000. The jobs cost 11 h $1,738,000 to manufacture according to their job cost sheets. 12 13 14 33 Use the contribution margin approach to calculate margin of safety in 16 dollars, as a percent and in units. Use the contribution margin approach to calculate operating leverage. What is the estimated percent increase in net income if sales increase 17 10%? New Operating Income? 34 73 74 75 Requirement 16 Use the contribution margin approach to calculate margin of safety in dollars, as a percent and in Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. Use the Excel ROUNDUP function to obtain whole units or dollars 76 77 78 79 80 Margin Safety $ Margin Safety % Margin Safety units 81 82 83 84 85 86 Requirement 17 Use the contribution margin approach to calculate operating leverage. What is the estimated percent increase in net income if sales increase 10%? New Operating Income? Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. Operating Leverage Change in Operating Income % New Operating Income $ 87 88 89 90 91 92 Boyd Corporation is a manufacturer that uses job-order costing. On January 1, 2024, the company's inventory balances were as follows: Raw Materials Inventory Work-in-Process Inventory Finished Goods Inventory $63,000 $41,000 $58,000 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, 2024, the company's predetermined overhead rate per direct labor-hour was based on a cost formula that estimated $806,000 of total manufacturing overhead for an estimated activity level of 62,000 direct labor-hours. A B 1 2 The following transactions were recorded for the year: 3 4 a Raw materials were purchased on account, $558,000. Raw materials used in production, $528,000. All of the raw materials were used as direct 5 b materials. The following costs were accrued for employee services: direct labor, $648,000; indirect labor, 6 C $198,000, selling and administrative salaries, $288,000. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and 7 d finished goods warehousing), $415,000. 8 e Incurred various manufacturing overhead costs (e.g., rent, insurance, and utilities), $548,000. Manufacturing overhead cost was applied to production. The company actually worked 44,000 9 f direct labor-hours on all jobs during the year. Jobs costing $1,728,000 to manufacture according to their job cost sheets were completed 10 g during the year. Jobs were sold on account to customers during the year for a total of $2,848,000. The jobs cost 11 h $1,738,000 to manufacture according to their job cost sheets. 12 13 14 33 Use the contribution margin approach to calculate margin of safety in 16 dollars, as a percent and in units. Use the contribution margin approach to calculate operating leverage. What is the estimated percent increase in net income if sales increase 17 10%? New Operating Income? 34 73 74 75 Requirement 16 Use the contribution margin approach to calculate margin of safety in dollars, as a percent and in Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. Use the Excel ROUNDUP function to obtain whole units or dollars 76 77 78 79 80 Margin Safety $ Margin Safety % Margin Safety units 81 82 83 84 85 86 Requirement 17 Use the contribution margin approach to calculate operating leverage. What is the estimated percent increase in net income if sales increase 10%? New Operating Income? Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. Operating Leverage Change in Operating Income % New Operating Income $ 87 88 89 90 91 92
