Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please ensure is right. tired of wrong answers ABC and CVP Analysis Multiple Products Good Scent, Inc. produces two cologne Rose and Violet of the
please ensure is right. tired of wrong answers
ABC and CVP Analysis Multiple Products Good Scent, Inc. produces two cologne Rose and Violet of the two, Rose is more popular. Data concerning the two products follow Rose Violet Expected sales (in cases) Selling price per case Direct labor hours 60,000 12,000 $103 $80 36,150 6,000 10,750 3,050 Machine hours Receiving orders Packing orders 52 22 92 49 Material cost per case $48 $44 111 Direct labor cost per case 55 The company uses a conventionat costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are desified as fixed or variable with respect to direct labor hours Fixed Variable Direct labor benefits $ $189,675 Machine costs 316,125 Receiving department acking department 198,500 241,500 118,000 Total costs $558,000 $505,800 All depreciation 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold for the company to break even. In your computations, round variable unit cost to the nearest cent and round the number of break-even packages to the nearest whole number. Break-even cases of Rose Break-even cases of Violet 2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break even. In your computations, round all computed amounts to the nearest cent and round the number of break-even packages to the nearest whole number. cases Break even cases of Rose cases Break-even cases of violet cases ABC and CVP Analysis Multiple Products Good Scent, Inc. produces two cologne Rose and Violet of the two, Rose is more popular. Data concerning the two products follow Rose Violet Expected sales (in cases) Selling price per case Direct labor hours 60,000 12,000 $103 $80 36,150 6,000 10,750 3,050 Machine hours Receiving orders Packing orders 52 22 92 49 Material cost per case $48 $44 111 Direct labor cost per case 55 The company uses a conventionat costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are desified as fixed or variable with respect to direct labor hours Fixed Variable Direct labor benefits $ $189,675 Machine costs 316,125 Receiving department acking department 198,500 241,500 118,000 Total costs $558,000 $505,800 All depreciation 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold for the company to break even. In your computations, round variable unit cost to the nearest cent and round the number of break-even packages to the nearest whole number. Break-even cases of Rose Break-even cases of Violet 2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break even. In your computations, round all computed amounts to the nearest cent and round the number of break-even packages to the nearest whole number. cases Break even cases of Rose cases Break-even cases of violet cases Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started